SoundCloud has announced that it will be laying off 40% of its staff and closing its offices in San Francisco and London, while its main offices in Berlin and New York will remain open.
"We need to ensure our path to long-term, independent success,"co-founder Alex Ljun wrote in a statement posted on the company's website on Thursday. "And in order to do this, it requires cost cutting."
Last year, Spotify was reportedly in "advanced talks" to acquire the Berlin-based music distribution platform and, this week, a New York Post report suggested that companies including Apple, Google, and Deezer are interested in buying the company.
In total, the company is laying off 173 of its 420 employees. "By reducing our costs and continuing our revenue growth, we’re on our path to profitability and in control of SoundCloud’s independent future," Ljun concluded in his statement.
A representative for SoundCloud was not immediately available for comment.