(HYPEBOT) – Spotify is laying off 17% of its global workforce, or 1500 of its estimated 9000 employees, the streamer said in a memo to staff Monday. This round of layoffs followed a 6% or 600-person reduction in January, with 200 more let go in June.
While Spotify has become the world’s top streaming service, it has struggled to find consistent profitability. Wall Street reacted positively in early trading Monday.
There is no indication yet on who will be affected, but layoffs of this magnitude are often spread across all or most departments. Employees who let go will reportedly begin to receive notices later today.
“I recognize this will impact a number of individuals who have made valuable contributions,” CEO Daniel Ek wrote in the memo to staff obtained by the Financial Times. “To be blunt, many smart, talented, and hard-working people will be departing us.”
“Considering the gap between our financial goal state and our current operational costs,” Ek continued, “I decided that a substantial action to rightsize our costs was the best option to accomplish our objectives.”
Major tech companies, including Amazon, Google, Meta, Twitter, and Netflix, have cut an estimated 250,000 jobs this year.
Bruce Houghton is the Founder and Editor of Hypebot, a Senior Advisor at Bandsintown, President of the Skyline Artists Agency, and a Berklee College Of Music professor.
