Spotify Announces Third Round Of Job Cuts (Image: Unsplash)
Music streaming giant Spotify has recently announced a third major round of staff cuts this year. On December 4, Spotify announced that they had decided to reduce their total headcount by approximately 17% across the company. Spotify CEO Daniel Ek had sent a memo to employees regarding this matter. The streaming platform”s latest move is aimed at reducing its costs and to adjust with the market conditions.
The latest round of layoffs is expected to affect almost 1,500 jobs at Spotify. “I recognize this will impact a number of individuals who have made valuable contributions. To be blunt, many smart, talented and hard-working people will be departing us,” wrote Spotify CEO in a blog post on December 4. Daniel Ek said that the company made this decision considering the gap between their financial goal state and the current operational costs. He also added that a substantial action to rightsize the costs is the best option to accomplish the company”s objectives.
In June, Spotify sacked around 200 employees from the podcast unit of the company. The streaming giant laid off 6 percent of its staff, roughly 600 people, in January 2023. The Spotify CEO mentioned in the blog post that the decision to reduce the team size is a hard but crucial step towards forging a stronger Spotify. Notably, Spotify”s move comes at a time despite their strong performance and profitability. Daniel Ek said that much of this output was linked to having more resources. “By most metrics, we were more productive but less efficient,” added Daniel Ek.
