Soundcloud music streaming site cuts jobs with profits still out of reach

Tammy Harvey
July 8, 2017

Founder and Chief Executive Alex Ljung said in a blog post that cutting costs would help on its "path to profitability" and keep the company in control of its "independent future".

Some of those affected took to Twitter to react - and to advertise their services. Offices in San Francisco and London will be shut. While many are unfortunately left without jobs, this move can position Soundcloud for exponential growth in the coming years.

Online audio distribution platform SoundCloud is laying off two in five of its staff and closing several offices to cut its cloth in a crowded market dominated by music streaming giants.

Founded in 2008, SoundCloud lets users upload music files easily, making it a go-to site both for stars who decide to share tracks for free and emerging artists looking for hassle-free promotion.

For a company that was valued at $700 million in 2014, SoundCloud's go-it-alone stance struck some observers as a head-scratcher.

Move will leave only NY and Berlin offices operational.

SoundCloud had raised $70 million from Twitter in June of 2016, after raising another $35 million of debt financing in January of past year. "Without them, we would not be where we are today", he added.

"With more focus and a need to think about the long term, comes tough decisions", Ljung wrote. However, a report from Recode published in March suggested that SoundCloud was considering offers in excess of $250 million (£200 million).

However, the future of SoundCloud has been a debate for quite some time due to the struggles of the company to find a source of revenue that is reliable.

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.

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