Connect with us

Hi, what are you looking for?

World

Spotify to axe 1,500 workers to save costs

  • Published
    9 minutes ago

About sharing

Image source, Getty Images

Swedish music-streaming giant Spotify has announced it is cutting 17% of its workforce, about 1,500 jobs, as the company seeks to clampdown on costs.

Chief executive Daniel Ek said he had made the “difficult” decision with economic growth slowing “dramatically”.

Spotify employs about 9,000 people, and Mr Ek said “substantial action to rightsize our costs” was needed for the company to meet its objectives.

He added he understood the cuts would be “incredibly painful for our team”.

Advertisement

“I recognize this will impact a number of individuals who have made valuable contributions”, he said. “To be blunt, many smart, talented and hard-working people will be departing us.”

Spotify cut staff earlier this year but the plans announced on Monday dwarf those previous plans.

In its latest results, Spotify had 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.

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

He said the company considered making smaller reductions during 2024 and 2025.

“Yet, considering the gap between our financial goal state and our current operational costs, I decided that a substantial action to rightsize our costs was the best option to accomplish our objectives,” he said.

“Despite our efforts to reduce costs this past year, our cost structure for where we need to be is still too big.”

You May Also Like

European Union

After a Russian-occupied Zaporizhzhia nuclear plant in Ukraine was detained, U.N. nuclear watchdog chief Rafael Grossi announced that the man responsible has been released....

United States

The goal is “energy security,” lobbyists said, although clean-energy advocates counter that wind and solar provide more protection from boom-and-bust oil markets. Russian troops...

World

For many years we have seen how the Soft Power used by the Kremlin works exclusively through culture, exhibitions, musical groups presentations, etc. It...

United States

The body of the stone dealer had been decaying for several weeks by the time it was found in an Upper West Side apartment....