Soundcloud is laying off nearly 40% of its staff and closing two offices in an effort to become profitable

After warning that it could actually run out of cash unless it finds new investors back in January, Soundcloud has now announced that it's cutting 173 of its total 420 employees and will be closing down both its London and San Francisco offices. Its New York City and Berlin offices will remain open.

The move seems to be a new effort from the music company to cut its debt and become less reliant on investors. In a few years time, it may even report a profit. "By reducing our costs and continuing our revenue growth, we’re on our path to profitability and in control of SoundCloud’s independent future," said co-founder Alex Ljung.

Back in March the company managed to find a much needed $70 million investment, which it says will hopefully help it achieve a 2.5 times year-on-year growth.

Photo: HUH.

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