Online music platform SoundCloud has laid off 40 per cent of its staff members in a bid to cut costs and "ensure our path to long-term, independent success", according to a statement from Soundcloud CEO and Founder Alex Ljung on Friday, The Verge reported.
The company made the "difficult step to let go of" 173 of its 420 employees "after careful and painful consideration", The Verge quoted Ljung as saying.
Ljung, in a blog post shared on the company's website on behalf of himself and co-founder Chief Product Officer Eric Wahlforss, said that the company had more than doubled its revenue over the past year.
"However, we need to ensure our path to long-term, independent success. And in order to do this, it requires cost cutting, continued growth of our existing advertising and subscription revenue streams, and a relentless focus on our unique competitive advantage — artists and creators," he 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," Ljung added.
The company's offices in San Fransisco and London will be closed down, The Verge reported, as SoundCloud has "consolidated the team into two offices: Berlin and New York".
The Verge reported that SoundCloud had in January said it may possibly run out of money before the end of the year.
However, it landed a $70 million credit line from investors which was used to increase technology and personnel resources, the report said.
"The SoundCloud platform listeners and artists love will remain available in more than 190 countries globally," Ljung added towards the end of his post. "SoundCloud will continue to be the place for what’s new, now and next in music... I look forward to sharing more about our future plans in the weeks and months ahead."