by Ray Hayes

Soundcloud’s CEO Alex Ljung recently announced that the company has let go more than 173 staffers with two major office closings in London and San Francisco. As of now, the company has over 175 million users in 190 countries, but despite the large number of users the company has struggled to generate a, “profitable business model.”

Some of the main problems Soundcloud has faced is overspending on lavish office spaces worldwide and the lack of premium accounts for ad-supported streams. Last year, the company lost $50 million and according to Digital Music News, “Worsening financial problems may have caused Spotify to pass on an acquisition opportunity.”

The news of Soundcloud’s financial woes are truly saddening because we at Supplierty News along with numerous others use Soundcloud to host tons of podcasts to reach a global market place. As of now, Soundcloud’s executives are still optimistic at the future and we are as well. Hopefully, things will change for the better but be on the lookout for other stream source if things worsen even more.

Below is a portion of the email SoundCloud CEO Alex Ljung sent out:

Eric and I founded SoundCloud nearly 10 years ago as we saw a need for something that would enable artists to share and connect through music. As we hovered together back in 2008 to push the button that would make SoundCloud live for the entire world, we had no idea the impact our, then tiny, platform would have on the future of music culture, and millions of listeners and artists around the globe.

In the competitive world of music streaming, we’ve spent the last several years growing our business, and more than doubled our revenue in the last 12 months alone. 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.

Click here for the full copy of the email.