Spotify reduces its workforce by 17% in the third round of layoffs this year.
Spotify is reducing its workforce by 17%, marking the third round of layoffs in the music streaming service this year.
According to Spotify CEO Daniel Ek, the recent job cuts are a result of the company’s attempt to maintain profitability in the face of a sluggish economy. In a letter to employees on Monday, Ek stated that the workforce adjustments were necessary. The exact number of job losses was not mentioned in the letter, but a spokesperson has confirmed that approximately 1,500 employees will be affected.
“In spite of our attempts to decrease expenses over the previous year, our cost structure is still too large for where we want to be,” Ek stated in the letter.
BuzzFeed news is closing down, and Meta is proceeding with layoffs.
Third round of cuts
This latest wave of layoffs marks Spotify’s third round of mass job cuts this year. In January, the firm slashed 6% of jobs
The company expanded its staff to 9,200 workers and then reduced it by 2% (equivalent to 200 employees) within four months, with the majority of the cuts occurring in its podcasting sector.
According to financial statements from the company, Spotify has faced challenges in becoming profitable. Despite increasing its monthly active users to 574 million in the third quarter of 2023, the company recorded a net loss of approximately $500 million for the nine months ending in September.
The stock price of Spotify increased by 14 points, equivalent to a 7.5% rise, reaching $194.26 during Monday’s morning trading session. Despite experiencing financial losses, the company’s share value has more than doubled in the current year.
Many prominent technology companies such as IBM, Snap, Google, Roku, and Meta, among others, participated in…sweeping job cuts2018
This year, there has been a decrease in the number of new hires compared to the hiring surge in 2018.pandemic
As millions of individuals in America started working remotely.
Microsoft in January
The company has declared a decrease of 5% in its employees, which amounts to approximately 11,000 workers throughout its global offices.
This report was contributed by The Associated Press.
Elizabeth Napolitano
Source: cbsnews.com