SoundCloud just laid off 40% of its workforce

SoundCloud claims the job losses are to ensure its “long-term, independent success.”

SoundCloud has laid off 40% of its workforce and closed offices in London and San Francisco, Bloomberg reports.

In a statement, SoundCloud CEO Alexander Ljung said that in order to ensure its “long-term, independent success” in the competitive streaming landscape, the business required “cost cutting, continued growth of our existing advertising and subscription revenue streams, and a relentless focus on our unique competitive advantage — artists and creators.”

The company has laid off 173 staffers worldwide and closed offices in London and San Francisco, with the remaining workforce being consolidated into its Berlin and New York offices. “We are extremely grateful for the contributions of each and every staff member who will be leaving SoundCloud, and we wish all of them the best. Without them, we would not be where we are today,” Ljung continued.

Ljung reassured SoundCloud users that will remain in operation in over 190 countries globally, and will “continue to be the place for what’s new, now and next in music.”

SoundCloud’s cashflow problems have been widely reported. Last year, it emerged that the company lost $44 million dollars in 2014, while this year, reports showed that it suffered a $52 million loss in 2015.

Earlier this year, the company hit back at claims that it was considering being sold at a knockdown price of $250 million, saying that it had a “a strong outlook for 2017 and beyond.”