Spotify plans to chop about 17 p.c of its workforce within the firm’s third spherical of layoffs this 12 months, CEO Daniel Ek introduced on Monday.
About 1,500 staff will probably be impacted, based mostly on Spotify’s numbers in its third quarter earnings report. The corporate beforehand laid off about 600 staff in January and one other 200 members of its podcasting division in June.
“Over the past two years, we’ve put important emphasis on constructing Spotify into a really nice and sustainable enterprise – one designed to realize our objective of being the world’s main audio firm and one that can persistently drive profitability and progress into the long run,” Ek stated in a notice to staff on Monday.
“Whereas we’ve made worthy strides, as I’ve shared many instances, we nonetheless have work to do,” he added. “Financial progress has slowed dramatically and capital has turn out to be costlier. Spotify just isn’t an exception to those realities.”
Ek acknowledged that the newest layoffs would really feel “surprisingly massive” to many at Spotify given the corporate’s latest earnings report. Spotify reported a revenue of 65 million euros within the third quarter of 2023, the primary time it had posted a revenue in a 12 months and a half, based on CNBC.
Nevertheless, the CEO recommended that there was nonetheless a “hole between our monetary objective state and our present operational prices” and stated he determined “a considerable motion to rightsize our prices was the most suitable choice.”
Ek stated in Monday’s notice that impacted staff would obtain a calendar invite shortly and would meet with human sources by the tip of the day on Tuesday.
“I acknowledge it will affect various people who’ve made worthwhile contributions. To be blunt, many good, gifted and hard-working folks will probably be departing us,” Ek stated.
“For these leaving, we’re a greater firm due to your dedication and laborious work. Thanks for sharing your skills with us,” he added. “I hope you understand that your contributions have impacted greater than half a billion folks and thousands and thousands of artists, creators, and authors all over the world in profound methods.”
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