Soundcloud hasn’t gone silent, but there’s definitely a death rattle being heard through the German-born streaming company’s headquarters as they’ve axed 40% of their workforce.
The dramatic cost-cutting move includes Soundcloud office closures in London and San Francisco, cutting 173 jobs (out of 420), while consolidating their operation across its New York and Berlin offices.
SoundCloud CEO and co-founder Alexander Ljung hinted that the company may “run out of cash” before the end of 2017 if it could not secure further financing, but also added that they had doubled their revenue over the past 12 months — although he didn’t reveal what has happened to the losses.
“We need to ensure our path to long-term, independent success,” Ljung said in a blog post today. “By reducing our costs and continuing our revenue growth, we’re on our path to profitability and in control of SoundCloud’s independent future.”
You can read Ljung’s full statement at Music Business Worldwide.