DIY music veteran SoundCloud flounders, lays off 40% of staff

Randall Padilla
July 8, 2017

SoundCloud had more than doubled its revenue in the past year but needed to take "tough decisions" to ensure its long-term health as an independent site.

He wrote: "We need to ensure our path to long-term, independent success".

However, on Thursday this week, SoundCloud announced that it is shutting down its London office as part of a wider company restructure, despite revenues more than doubling in the past year.

Online audio distribution platform SoundCloud is laying off two in five of its staff and closing several offices to cut its cloth in a crowded market dominated by music streaming giants. "Without them, we would not be where we are today", he added. SoundCloud will continue to be the place for what's new, now and next in music, powered by the world's most diverse music community.

SoundCloud cofounder and CEO Alex Ljung. SoundCloud veteran David Noël, one of SoundCloud's first employees, left in March, while in February it was reported that SoundCloud's COO and finance director had both left the company.

SoundCloud has raised over $298 million including $70 million from Twitter, showed data gleaned from Crunchbase.

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.

In January, SoundCloud said it was at risk of running out of money this year, especially if its subscription service continued to struggle.

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

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.

Other reports by AllAboutTopnews

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