SoundCloud slashes 40% of staff as financial reality hits hard

Dianna Christensen
July 8, 2017

"By reducing our costs and continuing our revenue growth, we're on our path to profitability and in control of SoundCloud's independent future."The blog did not state how much SoundCloud expects to save from the restructuring".

Some of those affected took to Twitter to react - and to advertise their services.

The job cuts also come shortly after a number of high-profile executives left the company. Its New York City and Berlin offices will remain open.

Sound designer Alex Ljung and artist Eric Wahlforss founded the Berlin-headquartered company in 2007.

The Germany-based company is cutting 173 out of 420 of its staff.

The rewards of music's digital-streaming renaissance are unevenly spread.

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It's been a hard year for SoundCloud, with the company announcing in January it may run out of money before the end of the year, before securing a $70 million line of credit from investors to keep operations running.

"With more focus and a need to think about the long term, comes tough decisions", he wrote.

Wahlforss added: "I go there [London] regularly and it's a crucial place for us to be as a global platform".

SoundCloud had raised $70 million from Twitter in June of 2016, after raising another $35 million of debt financing in January of a year ago.

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.

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. However, it incurred a 51 million Euro loss in 2015 on revenue of 21.1 million Euros.

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