Music streaming service Spotify (SPOT) is laying off 17% of its workforce in an effort to reduce costs and adjust to slowing growth.
In an email to staff, chief executive officer (CEO) Daniel Ek said that Spotify was taking “substantial action to right size our costs,” adding that the company took on too many employees during 2020 and 2021.
The headcount reduction works out to roughly 1,500 jobs. It comes after Spotify reported a $70.7 million U.S. profit in this year’s third quarter due to lower spending.
Spotify raised prices for its monthly subscriptions earlier this year and has also expanded into podcasts and audio books in recent years.
CEO Ek blamed the need to cut costs on higher interest rates and a slowing global economy.
Spotify previously cut 6% of its workforce, or about 600 employees, at the start of this year and laid off 2% of its staff in June.
The stock of Spotify has risen 120% in 2023 and is currently trading at $180.69 U.S. per share.
Tech Insider
