SoundCloud is cutting over 40 percent of its staff, the company announced on its blog. The streaming service will let go 173 of its 420 employees in order to “ensure our path to long-term, independent success,” SoundCloud CEO Alex Ljung wrote. The news was first reported by Bloomberg.
As part of the reduction, the company will shutter its offices in San Francisco and London, leaving only its New York and Berlin offices operational. It’s been a trying year for SoundCloud to say the least. The company announced it may possibly run out of money before the end of 2017 back in January, before landing a $70 million credit line from investors to stave off certain collapse.
After securing the round, SoundCloud claimed it was planning to use the funds to “strategically grow our technology and personnel resources,” but it doesn’t look like that panned out. The cuts may allow SoundCloud to make it through the end of the year, but unless the company can get a reliable revenue stream in order, its problems aren’t going anywhere.