SoundCloud Bankruptcy Nears: 173 People Laid Off; 2 Offices Closed

The situation at SoundCloud is quickly deteriorating, with bankruptcy potentially next. Company CEO Alex Ljung has just announced the layoff of 173 employees. Offices in San Francisco and London will be shutting down immediately.

Amidst a bevy of possible buyouts, SoundCloud’s financial system is heading towards implosion. The company has just announced that 173 staffers are being let go, with two major offices going dark.

According to official word from company CEO Alexander Ljung, offices in San Francisco and London are getting shut down. Effective immediately, all operations will be shifting to Berlin and New York.

The company boasts 175 million users across 190 countries. But despite the massive userbase, SoundCloud has struggled to create a profitable business model. And for more than a year, industry onlookers have been fearing a total financial meltdown.

Part of the problem seems to be wild overspending. The company has routinely splashed for expensive perks, including lavish offices worldwide. Those treated to meetings in New York, San Francisco, London, or Berlin have witnessed what good office living looks like. But of course, all of those trimmings carry a price tag....more