diff --git a/config/config.go b/config/config.go
index 7bcd9b162..6311f4451 100644
--- a/config/config.go
+++ b/config/config.go
@@ -2,6 +2,7 @@ package config
 
 import (
 	"fmt"
+	"time"
 )
 
 var Version string
@@ -22,3 +23,5 @@ const DefaultCustomAPIUrl = "https://origin.livepeer.com/api/"
 var RecordingCallback string = "http://127.0.0.1:8008/recording/status"
 
 var TranscodingParallelJobs int = 5
+
+var TranscodingParallelSleep time.Duration = 713 * time.Millisecond
diff --git a/transcode/transcode.go b/transcode/transcode.go
index e612bb1de..da7195cc0 100644
--- a/transcode/transcode.go
+++ b/transcode/transcode.go
@@ -7,7 +7,6 @@ import (
 	"path"
 	"strconv"
 	"sync"
-	"time"
 
 	"github.com/livepeer/catalyst-api/clients"
 	"github.com/livepeer/catalyst-api/config"
@@ -133,40 +132,24 @@ func RunTranscodeProcess(transcodeRequest TranscodeSegmentRequest, streamName st
 	// transcodedStats hold actual info from transcoded results within requested constraints (this usually differs from requested profiles)
 	transcodedStats := statsFromProfiles(transcodeProfiles)
 
-	// Iterate through the segment URLs and transcode them
-	// Use channel to queue segments
-	queue := make(chan segmentInfo, len(sourceSegmentURLs))
-	for segmentIndex, u := range sourceSegmentURLs {
-		queue <- segmentInfo{Input: u, Index: segmentIndex}
-	}
-	close(queue)
-	// Use channel for recieving the errors
-	errors := make(chan error, 100)
-	// Start number of workers in parallel
-	var completed sync.WaitGroup
-	completed.Add(config.TranscodingParallelJobs)
-	for index := 0; index < config.TranscodingParallelJobs; index++ {
-		go func() {
-			defer completed.Done()
-			for segment := range queue {
-				err := transcodeSegment(segment, streamName, manifestID, transcodeRequest, transcodeProfiles, targetTranscodedRenditionOutputURL, transcodedStats)
-				if err != nil {
-					errors <- err
-					return
-				}
-				var completedRatio = calculateCompletedRatio(len(sourceSegmentURLs), segment.Index+1)
-				if err = clients.DefaultCallbackClient.SendTranscodeStatus(transcodeRequest.CallbackURL, clients.TranscodeStatusTranscoding, completedRatio); err != nil {
-					log.LogError(transcodeRequest.RequestID, "failed to send transcode status callback", err, "url", transcodeRequest.CallbackURL)
-				}
+	var jobs *ParallelTranscoding
+	jobs = NewParallelTranscoding(sourceSegmentURLs, func(segment segmentInfo) error {
+		err := transcodeSegment(segment, streamName, manifestID, transcodeRequest, transcodeProfiles, targetTranscodedRenditionOutputURL, transcodedStats)
+		if err != nil {
+			return err
+		}
+		if jobs.IsRunning() {
+			// Sending callback only if we are still running
+			var completedRatio = calculateCompletedRatio(jobs.GetTotalCount(), jobs.GetCompletedCount()+1)
+			if err = clients.DefaultCallbackClient.SendTranscodeStatus(transcodeRequest.CallbackURL, clients.TranscodeStatusTranscoding, completedRatio); err != nil {
+				log.LogError(transcodeRequest.RequestID, "failed to send transcode status callback", err, "url", transcodeRequest.CallbackURL)
 			}
-		}()
-		// Add some desync interval to avoid load spikes on segment-encode-end
-		time.Sleep(713 * time.Millisecond)
-	}
-	// Wait for all segments to transcode or first error
-	select {
-	case <-channelFromWaitgroup(&completed):
-	case err = <-errors:
+		}
+		return nil
+	})
+	jobs.Start()
+	if err = jobs.Wait(); err != nil {
+		// return first error to caller
 		return outputs, err
 	}
 
diff --git a/transcode/transcode_jobs.go b/transcode/transcode_jobs.go
new file mode 100644
index 000000000..f2fd89c1e
--- /dev/null
+++ b/transcode/transcode_jobs.go
@@ -0,0 +1,106 @@
+package transcode
+
+import (
+	"sync"
+	"time"
+
+	"github.com/livepeer/catalyst-api/config"
+)
+
+type ParallelTranscoding struct {
+	queue     chan segmentInfo
+	errors    chan error
+	completed sync.WaitGroup
+	work      func(segment segmentInfo) error
+
+	m                 sync.Mutex
+	isRunning         bool
+	totalSegments     int
+	completedSegments int
+}
+
+func NewParallelTranscoding(sourceSegmentURLs []SourceSegment, work func(segment segmentInfo) error) *ParallelTranscoding {
+	jobs := &ParallelTranscoding{
+		queue:         make(chan segmentInfo, len(sourceSegmentURLs)),
+		errors:        make(chan error, 100),
+		work:          work,
+		isRunning:     true,
+		totalSegments: len(sourceSegmentURLs),
+	}
+	// post all jobs on buffered queue for goroutines to process
+	for segmentIndex, u := range sourceSegmentURLs {
+		jobs.queue <- segmentInfo{Input: u, Index: segmentIndex}
+	}
+	close(jobs.queue)
+	return jobs
+}
+
+// Start spawns configured number of goroutines to process segments in parallel
+func (t *ParallelTranscoding) Start() {
+	t.completed.Add(config.TranscodingParallelJobs)
+	for index := 0; index < config.TranscodingParallelJobs; index++ {
+		go t.workerRoutine()
+		// Add some desync interval to avoid load spikes on segment-encode-end
+		time.Sleep(config.TranscodingParallelSleep)
+	}
+}
+
+func (t *ParallelTranscoding) Stop() {
+	t.m.Lock()
+	defer t.m.Unlock()
+	t.isRunning = false
+}
+
+func (t *ParallelTranscoding) IsRunning() bool {
+	t.m.Lock()
+	defer t.m.Unlock()
+	return t.isRunning
+}
+
+func (t *ParallelTranscoding) GetTotalCount() int {
+	// not updating totalSegments, no lock needed here
+	return t.totalSegments
+}
+
+func (t *ParallelTranscoding) GetCompletedCount() int {
+	t.m.Lock()
+	defer t.m.Unlock()
+	return t.completedSegments
+}
+
+// Wait waits for all segments to transcode or first error
+func (t *ParallelTranscoding) Wait() error {
+	select {
+	case <-channelFromWaitgroup(&t.completed):
+		return nil
+	case err := <-t.errors:
+		return err
+	}
+}
+
+func (t *ParallelTranscoding) segmentCompleted() {
+	t.m.Lock()
+	defer t.m.Unlock()
+	if !t.isRunning {
+		// in case of error further progress is denied
+		return
+	}
+	t.completedSegments += 1
+}
+
+func (t *ParallelTranscoding) workerRoutine() {
+	defer t.completed.Done()
+	for segment := range t.queue {
+		if !t.IsRunning() {
+			return
+		}
+		err := t.work(segment)
+		if err != nil {
+			// stop all other goroutines on first error
+			t.Stop()
+			t.errors <- err
+			return
+		}
+		t.segmentCompleted()
+	}
+}
diff --git a/transcode/transcode_test.go b/transcode/transcode_test.go
index 02177c8aa..e613df354 100644
--- a/transcode/transcode_test.go
+++ b/transcode/transcode_test.go
@@ -10,7 +10,9 @@ import (
 	"path"
 	"path/filepath"
 	"strconv"
+	"sync"
 	"testing"
+	"time"
 
 	"github.com/livepeer/catalyst-api/clients"
 	"github.com/livepeer/catalyst-api/config"
@@ -157,3 +159,61 @@ func TestItCalculatesTheTranscodeCompletionPercentageCorrectly(t *testing.T) {
 	require.Equal(t, 0.01, calculateCompletedRatio(100, 1))
 	require.Equal(t, 0.6, calculateCompletedRatio(100, 60))
 }
+
+func TestParallelJobFailureStopsNextBatch(t *testing.T) {
+	config.TranscodingParallelJobs = 3
+	config.TranscodingParallelSleep = 0
+	sourceSegmentURLs := []SourceSegment{
+		// First 3 jobs run in parallel, second one fails
+		{"1.ts", 1000}, {"2.ts", 1000}, {"3.ts", 1000},
+		// Rest of jobs should not be processed
+		{"4.ts", 1000}, {"5.ts", 1000}, {"6.ts", 1000},
+	}
+	halted := fmt.Errorf("halted")
+	m := sync.Mutex{}
+	var handlerIndex int = 0
+	jobs := NewParallelTranscoding(sourceSegmentURLs, func(segment segmentInfo) error {
+		time.Sleep(50 * time.Millisecond) // simulate processing
+		m.Lock()
+		defer m.Unlock()
+		defer func() { handlerIndex += 1 }()
+		if handlerIndex == 0 {
+			return nil
+		}
+		if handlerIndex == 1 {
+			return halted
+		}
+		return fmt.Errorf("failure detected late")
+	})
+	jobs.Start()
+	err := jobs.Wait()
+	// Check we got first error
+	require.Error(t, err)
+	require.Error(t, err, halted)
+	// Check progress state is properly set
+	require.Equal(t, 6, jobs.GetTotalCount())
+	require.Equal(t, 1, jobs.GetCompletedCount())
+	time.Sleep(10 * time.Millisecond) // wait for other workers to exit
+}
+
+func TestParallelJobSaveTime(t *testing.T) {
+	config.TranscodingParallelJobs = 3
+	config.TranscodingParallelSleep = 0
+	sourceSegmentURLs := []SourceSegment{
+		// First 3 jobs should end at ~51ms mark
+		{"1.ts", 1000}, {"2.ts", 1000}, {"3.ts", 1000},
+		// Second 3 jobs should end at ~101ms mark
+		{"4.ts", 1000}, {"5.ts", 1000}, {"6.ts", 1000},
+	}
+	start := time.Now()
+	jobs := NewParallelTranscoding(sourceSegmentURLs, func(segment segmentInfo) error {
+		time.Sleep(50 * time.Millisecond)
+		return nil
+	})
+	jobs.Start()
+	require.NoError(t, jobs.Wait())
+	elapsed := time.Since(start)
+	require.Greater(t, elapsed, 60*time.Millisecond)
+	require.Less(t, elapsed, 160*time.Millisecond) // usually takes less than 101ms on idle machine
+	time.Sleep(10 * time.Millisecond)              // wait for other workers to exit
+}