The cost-cutting move means offices in London and San Francisco will shut down, and SoundCloud will consolidate operations between the remaining NY and Berlin offices. "We have over 300 people working at SoundCloud and we have more working today than ever before".
Though now up to 175 million subscribers, SoundCloud's indie clout hasn't led to almost the kind of financial success as competitors like Spotify.
He wrote: "We need to ensure our path to long-term, independent success". They called it a sudden announcement with nobody seeing it coming.
In total, the company is laying off 173 of its 420 employees.
The person added: "The employees know as much information as what is available in the media". We do not know what is actually taking place or what will the next steps be.
Subscription services proffered include SoundCloud Pro, which lets digital minstrels upload six hours of audio and includes features such as analytics; and SoundCloudGo, a music streaming service with diverse content including songs, DJ mixes and podcasts.
SoundCloud previously raised $100m in June 2016 in a round that included Twitter Ventures.
However, the future of SoundCloud has been a debate for quite some time due to the struggles of the company to find a source of revenue that is reliable.
SoundCloud has cut over 40 per cent of its workforce, in an attempt to cut costs, as the music streaming company continues to chase profitability. However, a report from Recode published in March suggested that SoundCloud was considering offers in excess of $250 million (£200 million).
FT cited accounts filed in the United Kingdom in January which showed the firm had incurred a 51 million euro loss in 2015 - having risen a third from the previous year.