Soundcloud Closes San Francisco and London Offices, Slashes 40 Percent of Staff

SoundCloud Umbrella

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".

"We need to ensure our path to long-term, independent success", Ljung wrote. Just a few months after being saved from bankruptcy by a $70m loan, the streaming service has made 40 per cent of its staff redundant and closed its offices in London and San Francisco.

For SoundCloud, a brand that had its COO Marc Strigel, finance director Markus Harder and CCO Stephen Bryan leave within the last five months, this appears to have been a long time coming, with signs of trouble circling the brand for at least the past year.

Eric [Wahlforss] and I founded SoundCloud almost 10 years ago as we saw a need for something that would enable artists to share and connect through music.

Two employees with SoundCloud said the video call shocked them adding they had not anticipated that something like that would happen. Its New York City and Berlin offices will remain open.

Though SoundCloud has around 175 million listeners, the company remains unprofitable.




In a move to stay viable, audio discovery and sharing platform SoundCloud is to cut 173 jobs, or 40pc of its workforce.

It had raised $100 million in new funding last June from several of investors including Twitter.

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. But that figure could now be as low as $250 million (£199 million), according to a Recode report in March.

The last official numbers show SoundCloud incurred a €51 million (£45 million) loss in 2015, slightly higher than the €39 million (£35 million) loss it recorded in 2014.

Music Streaming App, SoundCloud is very popular among users and is considered to be the favorite tool of artist.

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