Soundcloud has had difficulty transitioning from a free music streaming service, to a profitable business. It is being reported that the company is cutting 40% of it's staff to deal with recent business failures. The announcement was made by co-founder Alexander Ljung. Apparently, plans were being put together as early as January of this year to downsize.
The Souncloud staff was told that 173 jobs will be cut, and the companies' London and San Francisco offices will be closed. The Soundcloud offices in Berlin and New York will stay put. Bloomberg was the first publication to break the news. Co-founder Alex Ljung said, "we need to ensure our path to long-term, independent success.” He would go on to say that the company had doubled it's profits over the last year, but they wanted to consolidate for their future. It will be intriguing to see where things go from here.