Soundcloud just fired 173 people of its 420 staff working force, according to The Drum. London and San Francisco offices were closed. Remaining offices are New York and the headquarter in Berlin.
Alex Ljung said in a blog post that this was a cost reduction and a control of SoundCloud’s independent future; a path to profitability.
Soundcloud, the Youtube of audio, or the audio hosting company, has 2 sources of revenue: programmatic advertising and subscription streams; but faces strong competition from Spotify, Deezer, Amazon Music and Apple Music.