SoundCloud's co-founder and CEO Alex Ljung announces in a blog post that the company is laying off 173 of its staff, translating to around 40% of its employee worldwide. The company is also shutting down its offices in both London and San Francisco, while keeping its presence in Berlin and New York, where Soundcloud was founded.
Stating that the company has more than doubled its revenue in the last 12 months alone, Ljung says that the company "requires cost cutting, continued growth of our existing advertising and subscription revenue streams" to "ensure our path to long-term, independent success".
By cutting the roles, the company will be able to reduce its costs on its path to profitability, he says.
The announcement comes after Soundcloud was reportedly in failed talks with Twitter, and then Spotify earlier this year, as it worked on closing a round of funding believed to be in the region of $100 million.