Spotify, the world’s leading music streaming service has announced that it would be cutting 1,500 jobs, or 17% of its workforce, in a move aimed at reducing costs and streamlining operations.
“This was a difficult decision, but one that we believe is necessary to ensure Spotify’s long-term success,” said Spotify CEO Daniel Ek in a statement. “The global economic outlook has softened, and we need to adapt our structure to be more efficient and focused on our core business of music streaming.”
The layoffs are the third round of job cuts at Spotify in 2023. The company has also been slowing down its hiring pace in recent months.
In addition to the layoffs, Spotify is also taking other steps to reduce costs, such as consolidating offices and reducing marketing spending.
Ek said that the company is still committed to investing in its podcasting and audiobooks businesses, but that it needs to do so in a more disciplined way.
“We remain committed to our podcast and audiobook strategies, but we also need to ensure that these businesses are contributing to our overall profitability,” Ek said.
The layoffs are expected to affect employees across all of Spotify’s businesses, including music, podcasts and audiobooks. The company said that it will be providing severance packages and outplacement services to affected employees.
Spotify is still the world’s largest music streaming service, with over 422 million monthly active users. However, the company has been facing increasing competition from Apple Music, Amazon Music and other streaming services.
The layoffs are a sign of the challenges that Spotify is facing in the current economic environment. However, the company is still a major player in the music streaming industry, and it remains to be seen how the layoffs will impact its long-term growth.
