STOCKHOLM, SWEDEN (CelebrityAccess) – Spotify’s Sweden-based Managing Director (MD) for the Nordic Region, Jenny Hermanson, has announced she’s leaving the music streaming service after 14 years. Hermanson joined Spotify as an Account Manager in 2009 and was promoted numerous times, taking on the role of MD in 2015.
In a LinkedIn post on Friday (December 1), Hermanson wrote, “It has been an extraordinary privilege to lead and contribute to the growth of Spotify in one of its key markets. Being part of a start-up journey to where we are today has been nothing short of an adventure. I will always remember the early days as one of the best times in my career, with all the fighting spirit, the parties, and the steep learning curve. The company holds a special place in my heart, and I am immensely proud of the strides we’ve made together. From shaping the music landscape to fostering innovation, our collective efforts have truly made a mark.”
You can read Hermanson’s statement in full below:
“After an incredible 14-year journey with Spotify, it’s time for me to bid farewell to an unforgettable chapter as the Managing Director for the Nordic region.
“It has been an extraordinary privilege to lead and contribute to the growth of Spotify in one of its key markets. Being part of a start-up journey to where we are today has been nothing short of an adventure. I will always remember the early days as one of the best times in my career, with all the fighting spirit, the parties, and the steep learning curve. The company holds a special place in my heart, and I am immensely proud of the strides we’ve made together. From shaping the music landscape to fostering innovation, our collective efforts have truly made a mark.
“I want to express my deepest gratitude to the incredible team I’ve had the honor to work with. Your dedication, passion, and collaborative spirit have been the driving force behind our success. Together, we’ve navigated challenges, celebrated victories, and built something truly remarkable.
“To our partners, thank you for your trust and collaboration. It’s been a privilege to work alongside you and witness the transformative power of music in our communities.
“This decision to move on has been carefully considered, and I’m excited to explore new challenges beyond the Spotify universe. The friendships across the globe, lessons, and memories will forever be cherished.
“Change is inevitable, and it’s with a mix of nostalgia and anticipation that I take this next step. I’m grateful for the support, mentorship, and friendships cultivated at Spotify, and I’m confident that the company will continue to thrive and innovate.
“To my incredible colleagues, partners, and friends – thank you for an amazing 14 years. Let’s stay connected, and here’s to the next adventure!”
News of Hermanson’s departure came just before Spotify announced today (December 4) that they will slash approximately 17% of the company’s global workforce. According to an investor filing at the end of Quarter 3, which reported Spotify’s workforce consisted of 9,241 employees, over 1,500 jobs will be affected.
In a note sent to Spotify staff today and published online, Spotify’s co-founder and CEO, Daniel Ek, wrote: “If you are an impacted employee, you will receive a calendar invite within the next two hours from HR for a one-on-one conversation. These meetings will take place before the end of the day on Tuesday.”
This will mark the 3rd round of job cuts this year. In January, Spotify announced that it was slashing over 500 jobs worldwide, reducing its employee base by “about 6% across the company”.
Spotify launched another round of layoffs in June, reducing the headcount in its podcast division by 200, representing about 2% of the company’s total workforce at the time.
Reasons cited by Ek in his memo on Monday for the decision to cut 17% of the company’s workforce were that “economic growth has slowed dramatically” and that “capital has become more expensive,” noticed that “despite our efforts to reduce costs this past year, our cost structure for where we need to be is still too big.”
Added Ek: “I recognize this will impact several individuals who have made valuable contributions. To be blunt, many smart, talented and hard-working people will be departing us.”
Those within the industry have taken to social media to express their opinion on this latest round of job cuts.
Dave Lehmkuhl, Sales Director for Seamless.AI: “Spotify announced the layoff of 1500 people – 17% of their company. The actions they took in the process really impressed me.
– Provided an explanation to their current employees on what happened (easy capital and overhired); Getting back to being resourceful
– Provided five months of severance pay to the people impacted
– Accrued and unused PTO will be paid out.
– Spotify is covering healthcare for the five months of severance
– Helping them with outplacement support for two months
They own their mistake (overhiring) and are taking care of the people who helped them along the way. That is really all you can ask of an organization in tough times. I applaud their leadership team for this one.”
Some within Lehmkuhl’s comments agreed with the executive, writing:
D. Gretz, DLG Talent Booking: “WOW, that is incredible, especially compared to what PBS/The WNET Group gave us when we were laid off two weeks ago. One week severance. And our health insurance? Oh yeah, well, that terminates as of 12/31. And that’s all folks.”
H. Arden, Talent Acquisition Manager: “Glad to see this. It will mean a lot to those impacted, especially at this time of the year.”
Those on the other side of the fence had this to say.
J. McMillian, SaaS, Magic Lantern: “How many leaders were let go for missing the mark so badly? Because 17% is BS. Personally, for me to applaud any “efforts,” I would like to see that data as a leader that has owned P&L that should be my pink slip. Leadership does not get to talk to others about accountability if it does not start at the top and by those making the most. This is not an oopsie.”
C. Sukaer, eCommerce Tech: “But are the VP, SVPs, and C-level leaders still getting bonuses? Sure, people make mistakes. But the people who were laid off didn’t make the mistakes by accepting the job that was offered to them. The senior leadership made the mistake of over-hiring, yet the newly departed are paying the price despite a nice severance & months of healthcare coverage. Are the ones who made the mistake of paying any price?”
You can read Daniel Ek’s memo to Spotify staff in full below:
Team,
Over the last two years, we’ve put significant emphasis on building Spotify into a truly great and sustainable business – one designed to achieve our goal of being the world’s leading audio company and one that will consistently drive profitability and growth into the future. 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.
This brings me to a decision that will mean a significant step change for our company. To align Spotify with our future goals and ensure we are rightsized for the challenges ahead, I have made the difficult decision to reduce our total headcount by approximately 17% across the company. 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.
For those leaving, we’re a better company because of your dedication and hard work. Thank you for sharing your talents with us. I hope you know that your contributions have impacted more than half a billion people and millions of artists, creators, and authors around the world in profound ways.
I realize that for many, a reduction of this size will feel surprisingly large, given the recent positive earnings report and our performance. We debated making smaller reductions throughout 2024 and 2025. Yet, considering the gap between our financial goal state and our current operational costs, I decided that a substantial action to rightsize our costs was the best option to accomplish our objectives. While I am convinced this is the right action for our company, I also understand it will be incredibly painful for our team.
To understand this decision, I think it is important to assess Spotify with a clear, objective lens. In 2020 and 2021, we took advantage of the opportunity presented by lower-cost capital and invested significantly in team expansion, content enhancement, marketing, and new verticals. These investments generally worked, contributing to Spotify’s increased output and the platform’s robust growth this past year. However, we now find ourselves in a very different environment. And despite our efforts to reduce costs this past year, our cost structure for where we need to be is still too big.
When we look back on 2022 and 2023, it has truly been impressive what we have accomplished. But, at the same time, the reality is much of this output was linked to having more resources. By most metrics, we were more productive but less efficient. We need to be both. While we have done some work to mitigate this challenge and become more efficient in 2023, we still have a ways to go before we are both productive and efficient. Today, we still have too many people dedicated to supporting work and even doing work around the work rather than contributing to opportunities with real impact. More people need to be focused on delivering for our key stakeholders – creators and consumers. In two words, we have to become relentlessly resourceful.
I know you will all be anxious to hear the next steps about how this process will work. If you are an impacted employee, you will receive a calendar invite within the next two hours from HR for a one-on-one conversation. These meetings will take place before the end of the day on Tuesday, and while Katarina will provide more detail on all of the specifics, please know the following will apply to all of these bandmates:
Severance pay: We will start with a baseline for all employees, with the average employee receiving approximately five months of severance. This will be calculated based on local notice period requirements and employee tenure.
PTO: All accrued and unused vacation will be paid out to any departing employee.
Healthcare: We will continue to cover healthcare for employees during their severance period.
Immigration support: For employees whose immigration status is connected with their employment, HRBPs are working with each impacted individual in concert with our mobility team.
Career Support: All employees will be eligible for two-month outplacement services.
For the team that will remain at Spotify, I know this decision will be difficult for many. Please know we are focused on treating our impacted colleagues with the respect and compassion they deserve.
Looking Ahead
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. In Spotify’s early days, our success was hard won. We had limited resources and had to make the most of every asset. Our ingenuity and creativity were what set us apart. As we’ve grown, we’ve moved too far away from this core principle of resourcefulness.
The Spotify of tomorrow must be defined by being relentlessly resourceful in the ways we operate, innovate, and tackle problems. This kind of resourcefulness transcends the basic definition – it’s about preparing for our next phase, where being lean is not just an option but a necessity.
Embracing this leaner structure will also allow us to invest our profits more strategically back into the business. With a more targeted approach, every investment and initiative becomes more impactful, offering greater opportunities for success. This is not a step back; it’s a strategic reorientation. We’re still committed to investing and making bold bets, but now, with a more focused approach, ensuring Spotify’s continued profitability and ability to innovate. Lean doesn’t mean small ambitions; it means smarter, more impactful paths to achieve them.
Today is a difficult but important day for the company. To be very clear, my commitment to our mission and belief in our ability to achieve it has never been stronger. I hope you will join me on Wednesday for Unplugged to discuss how we move forward together. A reduction of this size will make it necessary to change the way we work, and we will share much more about what this will mean in the days and weeks ahead. Just as 2023 marked a new chapter for us, so will 2024 as we build an even stronger Spotify.
