SoundCloud has laid off 40% of its staff, as Bloomberg reports. The streaming platform announced it is cutting 173 of its 420 employees, in addition to closing its offices in San Francisco and London. SoundCloud’s headquarters in Berlin and office in New York will remain. Co-founder Alex Ljung said the decision was made in order to “ensure our path to long-term, independent success,” and also said, “By reducing our costs and continuing our revenue growth, we’re on our path to profitability and in control of SoundCloud’s independent future.” Last December, the “advanced talks” between Spotify and SoundCloud regarding an acquisition fell apart. In March, the company raised an additional $70 million in debt funding “to strategically grow our technology and personnel resources to fuel our expected 2.5 times year-over-year growth in 2017.”