SoundCloud cuts 40% of workforce, closes London office

SoundCloud Umbrella

SoundCloud Umbrella

This means the closure of its offices in London and San Francisco.

"With more focus and a need to think about the long term, comes tough decisions", wrote SoundCloud co-founder Alex Ljung on the company's blog.

Ljung maintained that the layoffs were made in an attempt to ensure "long-term, independent success".

Though now up to 175 million subscribers, SoundCloud's indie clout hasn't led to almost the kind of financial success as competitors like Spotify.

SoundCloud has cut over 40 per cent of its workforce, in an attempt to cut costs, as the music streaming company continues to chase profitability.

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Music streaming platform SoundCloud has closed down its London office and fired 173 employees, almost 40 per cent of the company's staff, concentrating its efforts at offices in Berlin and New York City.

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.

While consumer adoption of streaming services has led the world's largest record labels to see sustained sales growth for the first time since the glory days of the CD, the companies delivering the music online have struggled to make money.

SoundCloud has raised over $190 million (£154 million) in funding.

Two employees with SoundCloud said the video call shocked them adding they had not anticipated that something like that would happen. However, a report from Recode published in March suggested that SoundCloud was considering offers in excess of $250 million (£200 million).

Music Streaming App, SoundCloud is very popular among users and is considered to be the favorite tool of artist. However, it incurred a 51 million Euro loss in 2015 on revenue of 21.1 million Euros.

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