Spotify will lay off seventeen percent of its workforce, which amounts to approximately 1,500 employees. The streaming service wants to reduce its costs. Spotify already held two other rounds of layoffs earlier this year.
Spotify CEO Daniel Ek says the company invested heavily in 2020 and 2021, including expanding its team, as it was then able to “benefit from cheaper capital.” The streaming service says it is now in a different economic climate. “Despite our efforts to reduce costs over the past year, our cost structure is still too big for where we need to be,” says Ek.
According to the CEO, Spotify’s board has considered smaller rounds of layoffs in 2024 and 2025, but says that the gap between the financial targets and current costs is too large for this. Spotify has been making a loss in recent years, although the company turned a profit last quarter for the first time since 2021 .
Spotify already conducted layoffs of 600 and 200 employees in January and June, respectively, Reuters writes . According to the news agency, the new round of layoffs affects approximately 1,500 employees.
