Spotify is laying off more than 1,500 people. This is the third staff reduction in 2023

by alex

They will receive 5 months' severance pay

Spotify is laying off 17% of its employees in an effort to cut costs, CEO Daniel Ek told employees. With a total headcount of 9,241 revealed in the latest earnings report, cuts are expected to affect more than 1,500 people.

In a memo sent to employees, Ek said slowing economic growth and rising costs were to blame for the cuts: “Today we still have too many people supporting work and even doing work, rather than helping to create opportunities with real impact. As we've grown, we've strayed too far from that core principle of ingenuity.”

Spotify увольняет более 1500 человек. Это третье сокращение штата в 2023 году

This is Spotify's third major round of layoffs this year. The company announced in January that it would lay off 6% of its workforce, or about 600 employees. Then, in June, the company announced it would cut another 200 people in its podcast division. In addition to cutting costs, Spotify has also taken steps to boost revenue by raising prices on several of its plans in several markets, including the US, over the summer.

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These layoffs come as Spotify's headcount has expanded significantly during the pandemic, with headcount nearly doubling over the past three years, The Wall Street Journal noted.

Employees affected by Spotify's latest layoffs will receive five months of severance pay, during which the company will continue to cover their health care.

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