As Spotify and Apple Music continue to flourish in the music streaming sector, SoundCloud continues to be on the struggle bus. Earlier this morning (July 6), SoundCloud announced plans to slash 40% of its workforce.
SoundCloud informed its staff that it would be cutting 173 jobs from its team of 420 employees and will officially be shutting down its London and San Francisco offices. The company, at risk of running out of money, will be consolidating all of its work force into its Berlin headquarters and its office in New York.
In a blog post on SoundCloud's website, Alex Ljung, the company's founder and CEO said how the cost-cutting move will ensure the company's path to long-term, independent success.
“By reducing our costs and continuing our revenue growth, we’re on our path to profitability and in control of SoundCloud’s independent future,” said Ljung.
Source: Bloomberg
