LONDON — Spotify says it’s axing 17% of its world workforce, the music streaming service’s third spherical of layoffs this yr because it strikes to slash prices whereas specializing in changing into worthwhile.
In a message to staff posted on the corporate’s weblog Monday, CEO Daniel Ek mentioned the roles have been being lower as a part of a “strategic reorientation.” The publish didn’t specify what number of staff would lose their jobs, however a spokesperson confirmed that it quantities to about 1,500 folks.
Spotify had used low-cost financing to broaden the enterprise and “invested significantly” in staff, content material and advertising in 2020 and 2021, the weblog publish mentioned.
But Ek indicated that the corporate was caught out as central banks began climbing rates of interest final yr, which may sluggish financial development. Both are posing a problem, he mentioned.
“We now find ourselves in a very different environment. And despite our efforts to reduce costs this past year, our cost structure for where we need to be is still too big,” he mentioned.
Ek mentioned the “leaner structure” of the corporate will guarantee “Spotify’s continued profitability.”
Stockholm-based Spotify posted a web lack of 462 million euros (about $500 million) for the 9 months to September.
The firm introduced in January that it was axing 6% of complete employees. In June, it lower employees by one other 2%, or about 200 employees, primarily in its podcast division.
Tech firms like Amazon, Google, Microsoft, Meta and IBM have introduced a whole bunch of 1000’s of job cuts this yr.
