Spotify to axe 17% of workforce

The news: CEO of streaming firm Spotify, Daniel Ek, told staff that the company would make its third round of layoffs this year.

The numbers: Slashing 17% of the workforce, the wave of redundancies will push out approximately 1,500 Spotify employees. The company currently employs around 9,000 people across the globe.

The context: In a letter to staff, Ek explained that Spotify’s spending needs to be tapered, citing interest rate increases and slower economic growth after a period of spending in 2020-2021. The company is focused on pivoting subscriber growth into consistent profitability.

What was said: Ek said: “While we’ve made worthy strides, as I’ve shared many times, we still have work to do. Economic growth has slowed dramatically and capital has become more expensive. Spotify is not an exception to these realities […] 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.”