Music streaming service SoundCloud has let go of 173 employees, a significant percentage considering the company had less than 500 staffers before the layoffs. SoundCloud is also closing its London and San Francisco locations, consolidating operations into its Berlin headquarters and New York office. The news comes a few months after the decade-old music-sharing platform provider raised $70 million in debt.
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In a blog post announcing the layoffs, co-founder Alex Ljung said the layoffs are a way to “ensure our path to long-term, independent success.” But the company is said to be considering a sale—Spotify and Apple had previously expressed interest, and now French streaming service Deezer is reportedly considering an acquisition. SoundCloud has raised nearly $200 million in equity funding from the likes of Twitter and IVP, among others. The business was worth $1 billion in 2016, but its valuation has reportedly taken a significant hit since, as it has struggled to compete with similar services.
For more on SoundCloud, check out its free profile. And here’s more of our recent coverage on layoffs.
Article by PitchBook
