Spotify Implements Workforce Layoffs


Spotify, the leading Swedish music streaming service, has announced its decision to lay off approximately 17% of its workforce, equivalent to around 1,500 jobs. This marks the third round of layoffs for the company this year, reflecting their effort to curb costs and improve profitability.

The measures were revealed to staff in a memo by Chief Executive Officer Daniel Ek, as reported on the company’s website. When contacted for further comment, Spotify chose not to provide any additional information.

In his memo, Ek acknowledged the significant impact of such a reduction in workforce, stating, “A reduction of this size will feel surprisingly large given the recent positive earnings report and our performance. Yet, considering the gap between our financial goal state and our current operational costs, I decided that a substantial action to rightsize our costs was the best option.”

This announcement has had a positive effect on Spotify’s stock, with premarket trading on Monday showing a 2.4% increase, reaching $184.95. Overall, the stock has experienced a remarkable gain of over 130% during the past year.

Ek emphasized that these job cuts are essential for preparing Spotify for its next phase, suggesting that being lean is no longer just an option but a necessity.

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