Spotify is laying off 1,500 employees
Spotify is the latest tech company that will lay off employees as a cost-cutting measure. According to a public memo from Daniel Ek, co-founder and CEO of the Swedish audio streaming platform, approximately 17% of the workforce will be reduced.
A quick calculation based on the latest quarterly report reveals this is about 1,500 of the total 9,241 employees worldwide.
This is the third time Spotify is laying off employees, on top of increasing prices of its Premium subscription service. January saw 600 people get released, with 200 more from the Podcasts division being shown the door in July.
The executive said that making smaller reductions throughout 2024 and 2025 was discussed, but the gap between the financial goal state and current operational costs lead to the current decision.
Spotify headcount increased “significantly” in 2020 and 2021, reads the memo. The Wall Street Journal noted that employees nearly doubled as the company aimed to enhance its content, marketing and “new verticals”. The following 2022 and 2023 were more productive, but Spotify failed to become more efficient, pushing Ek and the company to drastic measures.
Each employee that is being released will get severance pay of approximately five monthly wages and their accrued and unused PTO will be paid out. Healthcare will be provided during the severance period, and employees will be eligible to work at a new place after two months.
Ek pointed out this will allow Spotify to have a “more focused approach,” and the shift in manpower is not a step back but a “strategic reorientation”. The remaining employees are supposed to be “relentlessly resourceful” in any future ways the company is operating, tackling problems, and innovating.
- 10 Dec 2023
Guarantee your boomer ears would not be able to tell the difference in a blind test
- 06 Dec 2023
AAC - gold? Standart? For digital audio? :D you made my day! Wake up, man! Aac is gold standart for youngsters with prepaid data plans. Im somehow even feeling jealous for such people who manage to live and feel gold standarts with aac and airpods.
- 06 Dec 2023
AAC has nothing to do with Apple. AAC is the successor to MP3 and a joint development by many companies, but Apple is not among them. It's also actively developed today and is the gold standard for digital audio.