- Spotify plans to lay off 1,500 employees, or 17% of its headcount, in a cost-cutting move.
- Despite recent positive earnings, CEO Daniel Ek emphasized the need for efficiency and right-sizing of costs.
- Spotify swung to a profit in the third quarter, aided by price hikes and subscriber growth, but still sees the need to maximize output while minimizing operational costs.
In a move reminiscent of its 2020 layoffs, Spotify has announced a third round of job cuts, this time slashing 1,500 jobs from its workforce. The layoffs come as the streaming giant restructures its teams in an effort to streamline operations and cut costs.
The job cuts will affect employees across the company’s global offices, including those in the United States and Europe. In a statement, Spotify’s CEO Daniel Ek cited the need to “reduce our investment in several initiatives” and “simplify our approach” as reasons for the layoffs.
This news comes as a blow to many employees who have been with the company for years, and has sparked concerns about the future of Spotify’s workforce. The company has assured that it will provide support for those affected, including severance packages and career transition assistance.
Spotify’s third round of layoffs is another sign of the challenging times facing the music streaming industry. With competition from rivals like Apple Music and Amazon Music, the company is under pressure to cut costs and improve its financial performance.
As Spotify continues to navigate the changing landscape of the music streaming industry, the impact of these job cuts on its workforce and overall operations remains to be seen.