Spotify 3rd Round Layoffs: The massive music streaming corporation Spotify said on Monday that it will be cutting roughly 17% of its workforce overall in an effort to become “both productive and efficient”.
In a memo to employees, Spotify CEO and founder Daniel Ek stated that the firm must properly scale its workforce in order to meet the “challenges ahead.”
He said that the company used lower-cost capital in 2020 and 2021 to invest extensively in the business and cited slower economic growth and rising capital expenses as the reasons for the layoffs.
“I have made the tough decision to cut about 17% of our workforce overall over the entire organisation. I understand that this will have an effect on those people who have contributed greatly. To put it bluntly, we will be losing a lot of intelligent, gifted, and diligent individuals, according to Ek.
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Spotify 3rd Round Layoffs
According to TechCrunch, Spotify employs over 8,800 individuals, and this job cut decision will affect approximately 1,500 of them.
The corporation would establish a baseline for all employees’ severance pay, with an average employee receiving roughly five months’ worth of pay. This will be computed using the employee’s tenure and the notice period required in the area.
During their severance term, employees will continue to receive healthcare coverage from the firm. For a period of two months, outplacement services will be available to all employees.
“I understand that, considering our accomplishments and the recent upbeat earnings report, a cut of this magnitude may seem remarkably big to many. We discussed cutting back in 2024 and 2025, but not by much,” the CEO wrote.
This year’s layoffs at Spotify number three.
As part of a corporate restructure, the business fired 200 workers, or 2% of its total personnel, from its podcast segment in June. In January, it cut 6% of its workforce, or roughly 600 staff members, worldwide.
