Spotify has stated that it will be cutting off roughly 17% of its personnel, affecting over 1,500 individuals, to cut costs and streamline operations. The music-streaming company made this decision amid a sluggish economy and growing capital costs.
Spotify CEO Daniel Ek made the announcement to all Spotify employees, marking the company's third layoff of 2023.
In January, the first round of workforce reductions occurred, resulting in the termination of about 600 employees. Subsequently, in June, an additional round of layoffs transpired, leading to the dismissal of about 200 staff members.
The news of this layoff will undoubtedly startle many of the affected employees, as it comes as a stark contrast to the positive third-quarter earnings announced in October 2023.