SoundCloud Cuts 40% of Staff, Will Shutter London and San Francisco Offices

As SoundCloud remains one of the best music services for finding and sharing new tracks, the company is facing some real financial issues – resulting in a drastic, 40% slash of its workforce announced today.SoundCloud in an effort to cut costs announced on Thursday that it has let go 173 employees and consolidated the remaining team into two offices – one in NY and the other in Berlin. SoundCloud is based in Berlin and will maintain a second office in NY.”We need to ensure our path to long-term, independent success,”co-founder Alex Ljun wrote in a statement posted on the company’s website on Thursday”. By reducing costs and continuing its revenue growth, the company says that it will be able to become profitable in the near future.”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”.SoundCloud was not immediately available for comment. However, we need to ensure our path to long-term, independent success.Earlier this year, however, SoundCloud was reportedly considering selling for considerably less.SoundCloud’s content partnerships director Raoul Chatterjee was asked about the number of people that had left the company when speaking to Music Week last month.”So what does this mean for SoundCloud?“. Today, after careful and painful consideration, we took the hard step to let go of 173 SoundCloud staffers and consolidated the team into two offices: Berlin and NY.