SoundCloud, the audio streaming site that is based on user-uploaded content, has announced today that it is laying off 173 of its 420 employees, or over 40% of its staff, in order to stay independent and ensure long-term success. Alex Ljung, co-founder and CEO, stated on the company's blog:
"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."
The company will close its offices in San Francisco and London, and consolidate its staff in its New York and Berlin offices. By reducing costs and continuing its revenue growth, the company says that it will be able to become profitable in the near future.
SoundCloud promises that nothing will change for its 175 million users in 190 countries, and will share more about the company's future plans in the coming weeks and months.