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Popular music application Soundcloud will be downsizing, laying off 40% of its employees (173 of 420) and closing its San Francisco and London Offices. The main offices in Berlin and New York, however, will remain open. C0-Founder Alex Ljun credited the move to a desire for ensured “long-term, independent success,” revenue growth and profitability which would come as a result of cost-cutting.

Last year there were talks of Spotify purchasing the Berlin-based program, and as of late there is reported interest from Apple, Google, and Deezer. While many are unfortunately left without jobs, this move can position Soundcloud for exponential growth in the coming years.