As SoundCloud remains one of the best music services for finding and sharing new tracks, the company is facing some real financial issues — resulting in a drastic, 40% slash of its workforce announced today.
The cost-cutting move means offices in London and San Francisco will shut down, and SoundCloud will consolidate operations between the remaining New York and Berlin offices. The company, at risk of running out of money, informed employees that 173 of 420 jobs will be cut.
“We need to ensure our path to long-term, independent success,” Alex Ljung, the company’s co-founder and chief executive officer, said according to Bloomberg. He revealed that with the cutbacks and doubled revenue over the past 12 months, things are looking up for SoundCloud.
“By reducing our costs and continuing our revenue growth, we’re on our path to profitability and in control of SoundCloud’s independent future.”
SoundCloud has been widely adopted by upcoming and established artists alike, and utilized by music lovers of all genres, especially electronic dance music and hip hop — it’d be a shame for it to end without a fair fight.