SoundCloud has laid off 40% of its staff – 173 jobs from a total headcount of 420 – in order to increase the company’s profitability and stability.
The Berlin-based company also stated it has consolidated its employees into two offices – the Berlin headquarters and New York – and that offices in London and San Francisco will be closed soon.
CEO and co-founder Alex Ljung has announced the cuts in a blog post:
“In the competitive world of music streaming, we’ve spent the last several years growing our business, and more than doubled our revenue in the last 12 months alone. However, we need to ensure our path to long-term, independent success. And in order to do this, it requires cost cutting, continued growth of our existing advertising and subscription revenue streams, and a relentless focus on our unique competitive advantage — artists and creators.”
“By reducing our costs and continuing our revenue growth, we’re on our path to profitability and in control of SoundCloud’s independent future.“