Update: SoundCloud has confirmed via Twitter that the platform is not shutting down. They have received a budget cut, and intend on providing their services in the long run.

Previously, news of the platform closing down due to lack of funds had started to circulate amongst social media and was picked up by many.

Not every year is a lucky one! Similar is the case with SoundCloud, an online based music platform.

In the first week of July, SoundCloud announced that the company will be laying off almost 173 employees in the month.

They will also be closing two of their offices in San Francisco and London, whereas their main offices in Berlin and New York will remain open.

We need to ensure our path to long-term, independent success. And in order to do this, it requires cost cutting.” – Alex Ljun Founder & ceo soundcloud

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This had been a tough year for SoundCloud. As per a report by TechCrunch, SoundCloud claims that they might not have enough money to even see it through the year. The founders averred that shutting down their offices in San Francisco and London would help them re-rein their expenses.

Stirring the pot, a video of Alex and Eric Wahlforss, the founders of SoundCloud, went viral telling the remaining staff that the company only has enough funding to last until the end of third quarter 2017, just 50 days from now.

According to the experts, SoundCloud, despite being an amazing app, has never managed to figure out how to earn money from its users.

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To cover their loss, SoundCloud recently launched a paid service called “SoundCloud Go” which will allow artists to get paid, making the app ad-free and also offer offline music playback.

Up till now, everything is fine for SoundCloud, but only time will tell how long they can survive under such conditions in such a highly competitive world.

Stay tuned to Brandsynario for latest news and updates.

Contributed By: Umaima Nadeem

Source: ProPakistani