After long controversy, SoundCloud will not shutdown

CAIRO – 30 July 2017: Music streaming service SoundCloud is still struggling financially following its CEO Alex Ljung denial of rumors of its shutdown last week. The company had to cut off approximately 40 percent of its staff; however Ljung assured users that “SoundCloud is here to stay.”

The company has previously stated that it is covered financially until the fourth quarter of 2017. "The music you love on SoundCloud isn’t going away, the music you shared or uploaded isn’t going away, because SoundCloud is not going away. Not in 50 days, not in 80 days or anytime in the foreseeable future. Your music is safe,” Ljung said in an interview with Business Insider earlier.

SoundCloud’s success has resonated from several audiences including London, according to Eric Wahlfross the cofounder of German music streaming company, where he mentioned that the company would not have developed without its headquarter in London that operated as a global platform.

Despite the international importance the London office presents, it will shut down as part of the firm’s restructuring plan as well as the office in San Francisco. The only SoundCloud headquarters that will be operating following the restructuring are Berlin and New York.

The article further stated that the firm will not be able to afford its office expenses in London, which is said to be more expensive than operational costs in Berlin.

The company is building an ambitious long-term plan through reducing costs to grow revenues and increase profitability.

Established in 2007, SoundCloud assisted rising artists in their careers, competing with music outlets; Spotify, Apple Music, and Amazon Music, the firm has launched a subscription service fee worth $9.99.