SoundCloud Cuts 40% of Staff, Will Shutter London and San Francisco Offices

SoundCloud Cuts 40% of Staff, Will Shutter London and San Francisco Offices

CEO and co-founder Alex Ljung described the cost cutting measures were necessary "to ensure our path to long-term, independent success".

Ljung also said, "By reducing our costs and continuing our revenue growth, we're on our path to profitability and in control of SoundCloud's independent future". This means the closure of its offices in London and San Francisco.

It introduced advertisements in mid 2015 ahead of the launch of its $9.99 subscription service, which launched in March 2016 to compete with Spotify, Apple Music, and Amazon Music.

Two SoundCloud employees said the announcement came as a shock, adding that they hadn't anticipated anything like this happening in the near future. Its freebie userbase is bigger than that of its competitors, and the platform remains a go-to-destination for early-adopters and opinion formers looking for new music. SoundCloud reportedly had around 420 employees before the cuts.

"Eric [Wahlforss] and I founded SoundCloud almost 10 years ago as we saw a need for something that would enable artists to share and connect through music", Ljung wrote.

Circa 175 million listeners have flocked to the company.

More news: Can poor sleep lead to Alzheimer's?

It had raised $100 million in new funding last June from several of investors including Twitter.

"With more focus and a need to think about the long term, comes tough decisions".

In January, SoundCloud said it was at risk of running out of money this year, especially if its subscription service continued to struggle.

Streaming platform SoundCloud, which has become a favourite tool of artists but has struggled to find ways to make money, is to lay off almost half its staff.

FT cited accounts filed in the United Kingdom in January which showed the firm had incurred a 51 million euro loss in 2015 - having risen a third from the previous year.

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