SoundCloud is cutting almost half of its workforce in order to cut costs and approach profitability, it was revealed this week.
The popular music platform, which has 175 million active users, is eliminating 173 positions.
SoundCloud is shutting down entire offices in San Francisco and London, the company informed staff in an internal memo, consolidating its workforce to Berlin and New York.
“We need to ensure our path to long-term, independent success,” said cofounder Alex Ljung.
Revenue has doubled in the past year, according to Ljung, but costs remain too high to turn a profit. In order to compete with rivals like Spotify and Apple Music, the company must make tough decisions.
Recent reports have also suggested these larger incumbents may be interested in acquiring the platform, though SoundCloud appears resistant to the idea.
“We’re on our path to profitability and in control of SoundCloud’s independent future,” Ljung said.
Spotify has 50 million paying subscribers; Apple Music has 27 million.