The music streaming company, Spotify has announced a 17% workforce reduction to manage costs and increase efficiency.
It follows a layoff of 200 employees from its podcast unit in June 2023, representing 2% of its workforce. CEO Daniel Ek promises support for affected employees, including payments based on tenure and job search assistance.
Spotify CEO Daniel Ek announced the changes via a blog post, “This brings me to a decision that will mean a significant step change for our company. To align Spotify with our future goals and ensure we are right-sized for the challenges ahead, I have made the difficult decision to reduce our total headcount by approximately 17 percent across the company. I recognize this will impact several individuals who have made valuable contributions. To be blunt, many smart, talented, and hard-working people will be departing us.”
The CEO said that they had to think hard about how to make the company work better in the future. And sadly, this means that some people who work at Spotify will have to leave their jobs. These are smart, talented, and hard-working individuals who have contributed a lot to the company.