Swedish music streaming service Spotify wants to cut around 1,500 jobs. About 17 percent of employees – one in six – would have to leave Spotify, company boss Daniel Ek wrote in a letter published on Spotify’s website. He cited slowing economic growth and rising interest rates as reasons. This also applies to Spotify.
At the end of 2022, the Stockholm-based company had almost 8,400 employees. According to a spokesperson, approximately 1,500 jobs will be affected by the cuts.
First made a profit, now massive layoffs
He was aware that a cut of this magnitude would seem surprisingly high to many given recent positive earnings figures, Ek continued.
Spotify entered the black in the third quarter of this year after an increase in user numbers and a price increase. The Swedish company is seen as the clear number one in music streaming, ahead of Apple and Amazon.
“Comprehensive measures are the best option”
According to Ek, smaller staff reductions were also discussed in the next two years. “However, given the gap between our financial goals and our current operating costs, I have determined that a comprehensive measure to adjust our costs is the best option to achieve our goals,” the manager wrote.
Employees affected by the workforce reduction should receive severance pay and any remaining vacation days paid out.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
