Streaming service Soundcloud will lay off 40% of its staff and close offices in San Fransisco and London, Bloomberg reports. The company says they're cutting down to get close to profitability, with the aim of staying independent. Earlier this year, Recode reported that Soundcloud had been unsuccessfully trying to raise $100 million in funding since the summer, and was talking to potential buyers, including Spotify, who opted not to buy the streaming service last year.
Why it matters: Soundcloud has always had a massive music library and audience, but they've never been able to turn that into cash. And with an unstable business model, it's struggled to remain competitive with Spotify and Apple Music.