Some rough news today for SoundCloud, the audio streaming site whose content is largely based around uploads from its 175 million users in 190 countries. The company has announced that it is laying off 173 employees, and it is closing offices in San Francisco and London. The moves are being described as cost cutting measures “to ensure our path to long-term, independent success,” in the words of co-founder and CEO Alex Ljung, who revealed the news in a blog post. The startup, which was founded in Berlin in 2008, will continue to have offices in Berlin and New York.
The news comes after a rough period for SoundCloud. After entering into talks but never closing two potential acquisitions, first to Twitter and then to Spotify, Soundcloud arranged a $70 million credit line in March of this year to help the business continue to operate as it worked on closing a round of funding believed to be in the region of $100 million.
Today’s news could mean one of two things: either the funding never closed and/or investors who are considering it have laid down some cost-cutting conditions in order to see it go through. The fact that there is no funding round being announced today makes me guess that the round has yet to close.