Spotify to lay off 17 percent of its workforce, at least 1,500 people
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Spotify is set to cut around 17 percent of its workforce, which amounts to laying off at least 1,500 people , in the latest of multiple rounds from the company in 2023. Just days after Spotify's biggest publicity push with its year-end Wrapped, founder and CEO Daniel Ek shared news of "organizational changes" with employees and publicly in a blog post on Monday, writing "being lean is not just an option but a necessity." "To align Spotify with our future goals and ensure we are right-sized for the challenges ahead, I have made the difficult decision to reduce our total headcount by approximately 17 percent across the company," Ek wrote. "The decision to reduce our team size is a hard but crucial step towards forging a stronger, more efficient Spotify for the future. But it also highlights that we need to change how we work," he added later in the post. Notably, Spotify's layoffs come just over a month since the company's positive earnings report for Q3, in which Spotify reported its total revenue grew 11 percent year-on-year to €3.4 billion, exceeding guidance, with a gross margin finishing above guidance at 26.4 percent, and a return to profitability, and an operating income of €32 million for the quarter. In other words, the company is doing well, financially. "I realize that for many, a reduction of this size will feel surprisingly large given the recent positive...
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