SoundCloud Go was launched last year, and although it saw gains for the company it is difficult to compete with other streaming sites such as Spotify and Apple Music.
According to the Financial Times SoundCloud may not survive until the end of the year due to huge loss of revenue.
The streaming service is said to have lost almost $52 (€49) million in 2015 alone.
Google was rumoured to be buying the company last week for $500(€475) million but no further details have emerged.
With a competitive market of music streaming services, other sites such as Spotify and Pandora find it difficult to stay profitable despite millions of paying users.
SoundCloud is a popular site as it has a user base of 175 million, but outside investment or an acquisition of the company may be the only thing that saves it at this point.