About a week ago one of the co-founders of SoundCloud, Alex Ljun, issued a statement saying that forty percent of the company had been laid off. According to Fader, Ljun stated that the reason for this shocking move was to help reduce cost & continue to grow revenue in order for the company to maintain control of its future.

Vojta Stavik, a SoundCloud employee, was scheduled to start working this upcoming Monday, but was alerted two weeks ago that his job had been revoked. Since his contract included four weeks notice of dismissal, Stavik is considering taking SoundCloud to court according to Tech Crunch.

Ljun’s statement has caused an uproar within the company, as SoundCloud sources produced a corporate wide meeting this past Tuesday. During the video conference both founders Alex Ljun & Eric Wahlforss told the remaining staff that there was only enough funding for the business to make it for another eighty days.

SoundCloud launched its own paid service, SoundCloud Go, after signing licensing deals with major labels in March, however the company hasn’t released subscriber figures. It’s been reported that within the past year companies such as Google, Twitter & Spotify are looking into buying SoundCloud.