Spotify To Axe 1,500 Workers To ‘Save Costs’

‘These job losses are the latest in a series of layoffs announced in the tech industry.’

Spotify To Axe 1,500 Workers To ‘Save Costs’

Spotify, the Swedish music-streaming firm, has stated that it would lose 17% of its staff, or around 1,500 positions, to reduce expenses.

With economic growth decreasing "dramatically," CEO Daniel Ek said he took the "difficult" decision.

Spotify employs about 9,000 people, and Ek stated that "substantial action to rightsize our costs" was required for the firm to accomplish its goals.

He stated that he realized the layoffs would be "extremely painful for our team."

"I recognize this will impact several individuals who have made valuable contributions," added the president. "To be blunt, many smart, talented, and hard-working people will be departing us."

Spotify laid off employees earlier this year, but current plans dwarf the statements.

In its latest results, Spotify reported a profit of €65m (£55.7m) for the three months to September—its first quarterly profit for more than a year—helped by price rises and higher subscriber numbers.

The tech company has been expanding worldwide as it seeks to reach a billion users by 2030.

It currently has 601 million of them, up from 345 million at the end of 2020.

Ek said that given the recent "positive" results, the job cuts being announced "will feel surprisingly large" for many people.

He said Spotify had considered making smaller reductions during 2024 and 2025 but decided that more drastic action was needed to improve the company's finances.

Spotify has spent a lot of money since its inception on expanding the company and acquiring unique content, such as podcasts developed by Michelle and Barack Obama, as well as the Duke and Duchess of Sussex.