Spotify, aiming to reach one billion users by 2030, has expanded globally, currently boasting 601 million users
In a strategic cost-cutting move, Spotify, the Swedish music streaming titan, has announced its decision to cut its workforce by 17%, equivalent to around 1,500 jobs.
CEO Daniel Ek, acknowledging the difficulty of the decision, cited an essential need to “adjust our costs” amid a significant slowdown in economic growth.
While Spotify, with about 9,000 employees, has previously undergone staff reductions, this latest announcement goes far beyond its previous measures. In its latest quarterly results, the company reported a profit of €65m (£55.7m) for the quarter ended September, its first quarterly profit in over a year, on the back of subscriber growth and price increases .
Despite the positive economic recovery, Ek admitted that the job cuts would be “incredibly painful for our team”. He highlighted the significant impact on “a lot of smart, talented and hard-working people” who would be leaving the company.
Ek, aware of the surprise factor due to recent positive results, justified the drastic action, indicating that smaller reductions in 2024 and 2025 were initially considered, but were deemed insufficient for the necessary economic improvement.
Spotify, aiming to reach one billion users by 2030, has expanded globally, with 601 million users compared to 345 million at the end of 2020. The company has invested heavily in global expansion and securing exclusive content such as podcasts with high-profile figures such as Michelle and Barack Obama and the Duke and Duchess of Sussex.
The impact of these job cuts echoes a broader trend in the tech industry, where giants such as Meta, Microsoft, Amazon and Google have also announced significant workforce reductions this year.
Spotify plans to notify affected employees starting Monday, providing severance pay, vacation pay and health care coverage for the layoff period. In addition, immigration support will be offered to employees whose immigration status is linked to their employment.
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