Spotify to axe 1,500 workers to cut costs

Spotify, the Swedish music-streaming behemoth, has declared a 17% reduction in its workforce, equating to approximately 1,500 job losses. The company's objective is to curtail its expenditures. Daniel Ek, the Chief Executive Officer, acknowledged the difficulty of this decision, citing a significant slowdown in economic growth.

Spotify currently employs around 9,000 individuals. Mr Ek emphasized the necessity of 'rightsizing' the company's costs to achieve its objectives. He expressed his understanding of the profound impact these cuts will have on the team, stating, 'I recognize this will impact a number of individuals who have made valuable contributions. To be blunt, many smart, talented and hard-working people will be departing us.

Earlier this year, Spotify had already implemented staff reductions. However, these new plans significantly overshadow those previous announcements. In its most recent quarterly report, Spotify posted a profit of €65m (£55. 7m), its first in over a year, bolstered by price increases and a surge in subscriber numbers. The company has set a goal of reaching a billion users by 2030, and currently boasts 601 million, a substantial increase from 345 million at the end of 2020. Mr Ek expressed that given the recent 'positive' results, the scale of the job cuts being announced may come as a surprise to many.