Report: SoundCloud to close Australian office tomorrow

SoundCloud isset to close its Australian office as early as tomorrow (July 28), according to AdNews.

The magazine reports that the service will continue to have a presence in Australia and New Zealand,just not a physical one.

Sydney-based Commercial Director Shaun Alexander and Senior Account Manager Marta Bonzanini are among those leaving the company.

The closure of the Australian office comes as part of a global cost-cutting exercise which saw 173 jobs slashed, and offices in London and San Francisco closed earlier this month.

The cost-cutting move, which is said to be at the instruction of potential investors, is“to ensure our path to long-term, independent success,” according to CEO Alex Ljung, who co-founded the company in 2008.

After near-sales to Twitter and Spotify, SoundCloud arranged a US$70 million credit line in March of this year to help the business continue to operate, as it worked on closing a round of funding believed to be in the region of US$100 million.

SoundCloud has so far raised around US$193 million with current investors including Universal, Sony and Warner Music.

The Australian office was set up last September, offering $11.99-a-month subscribers “an expanded catalogue of more than 135 million tracks from some of the biggest and emerging artists from around the globe, with an ad and preview-free listening experience you can take offline.”