SoundCloud closes London, San Francisco offices as it struggles to survive

Amelia Krales

Amelia Krales

Music streaming service Soundcloud will make 173 employees redundant and close its London office as it tries to cut costs and find its way to making money.

In a blog post on his site, SoundCloud co-founder and CEO Alex Ljung announced his vision for the company's future, which he assured readers and users will continue to operate in almost 200 countries.

"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".

Soundcloud cutting about 40 percent of its staff in a cost-cutting move the digital music service says will give it a better financial footing to compete against larger rivals Spotify Ltd. and Apple Inc. Its New York City and Berlin offices will remain open.

Follow StartupSmart on Facebook, Twitter, LinkedIn and iTunes.

The nine-year-old venture capital backed company is cutting 173 positions at the company, which now employs 420 people across four offices: Berlin, New York, London, and San Francisco.

Two employees with SoundCloud said the video call shocked them adding they had not anticipated that something like that would happen.

"With more focus and a need to think about the long term, comes tough decisions", Ljung wrote. But that figure could now be as low as $250 million (£199 million), according to a Recode report in March.

SoundCloud continues to struggle.

FT cited accounts filed in the United Kingdom in January which showed the firm had incurred a 51 million euro loss in 2015 - having risen a third from the previous year.

SoundCloud was supposed to have led a new round of industry consolidation, but the streaming service has instead committed itself to isolation.

Latest News