Published
Thu, Jul 6, 2017, 16:19
- Offices in London and San Francisco will shut as the company tries to become more competitive.
SoundCloud has laid off 40% of its staff today.
The Berlin-based company announced the cuts today in a blog post, as part of a drive to increase the company's profitability and stability.
"We need to ensure our path to long-term, independent success," writes CEO Alex Ljung. "And in order to do this, it requires cost cutting, continued growth of our existing advertising and subscription revenue streams, and a relentless focus on our unique competitive advantage—artists and creators."
The move includes laying off 173 staff members and consolidating all operations in the New York and Berlin offices, which means that the London and San Francisco branches will close. It comes after reports that SoundCloud was on the verge of running out of money, though Ljung also notes that revenue had doubled in the past year alone.
"By reducing our costs and continuing our revenue growth, we're on our path to profitability and in control of SoundCloud's independent future," he says.