The music streaming service SoundCloud has reportedly laid off nearly half of its staff and closed two of its international offices.
As Bloomberg reports, the music platform has decided to cut 173 of its 420 total employees as well as shutting the doors of offices in London and San Francisco, choosing to operate solely out their Berlin and New York headquarters.
Co-founder and Chief Executive Officer Alex Ljung has released a statement regarding the cuts. He said that the severe drop in employee count is to “ensure our path to long-term, independent success,”
Ljung also said, “By reducing our costs and continuing our revenue growth, we’re on our path to profitability and in control of SoundCloud’s independent future.”
Late last year, the talks between SoundCloud and Spotify regarding the acquisition of the free music streaming service fell apart. The deal was said to be worth £535 million.
A source reportedly said that the company ultimately walked away because it feared that an acquisition could negatively impact its IPO preparation.
Earlier this year, however, SoundCloud was reportedly considering selling for considerably less. The service, valued at $750 million in 2014, has been trying to raise $100 million to keep the company above water.
Prior to the change to the copyright identification system, DJs and artists could only post mixes if they had permission to use the copyrighted tracks. But the system was prone to mistakes, and had been known to remove content featuring the uploader’s own material.