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 workers will likely be impacted, primarily based 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.
“During the last two years, we’ve put important emphasis on constructing Spotify into a very nice and sustainable enterprise – one designed to realize our aim of being the world’s main audio firm and one that may constantly drive profitability and development into the long run,” Ek stated in a observe to workers on Monday.
“Whereas we’ve made worthy strides, as I’ve shared many occasions, we nonetheless have work to do,” he added. “Financial development has slowed dramatically and capital has develop into dearer. Spotify will not be an exception to those realities.”
Ek acknowledged that the newest layoffs would really feel “surprisingly giant” 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, in accordance with CNBC.
Nevertheless, the CEO advised that there was nonetheless a “hole between our monetary aim state and our present operational prices” and stated he determined “a considerable motion to rightsize our prices was the best choice.”
Ek stated in Monday’s observe that impacted workers would obtain a calendar invite shortly and would meet with human assets by the top of the day on Tuesday.
“I acknowledge this may impression plenty of people who’ve made priceless contributions. To be blunt, many sensible, gifted and hard-working individuals will likely be departing us,” Ek stated.
“For these leaving, we’re a greater firm due to your dedication and onerous work. Thanks for sharing your abilities with us,” he added. “I hope you understand that your contributions have impacted greater than half a billion individuals and tens of millions of artists, creators, and authors all over the world in profound methods.”
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