Spotify is reducing its workforce
Daniel Oak has announced in a letter to the employees that the company will reduce its workforce by 17 percent, which according to The evening paper means that 1,500 employees lose their jobs. The cuts affect all parts of the company.
Ek emphasized the difficulty of the decision and expressed regret that many talented and hard-working people will be affected.
Although Spotify recently reported strong interim reports and managed to attract more subscribers than expected, Ek emphasizes that there is a large gap between the company’s financial goals and its operating costs. He points out that although productivity has increased with large resources, efficiency has been insufficient.
“We have been more productive, but less efficient. We must be both,” writes Ek.
The affected employees will be informed directly by Spotify’s human resources department, with an invitation to a conversation. Ek has also mentioned that those affected by the cut will be offered an average of five months’ salary in severance pay, depending on their length of service.
Previous cuts
This latest move is not the first of its kind for Spotify. Earlier in 2023, the company implemented two separate cuts: One at the beginning of the year where 600 employees were laid off and another in June with another 200 layoffs, according to SVT.
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