Tech

Spotify cuts 17% jobs amid rising capital costs

Spotify is eliminating about 17% jobs, its third round of layoffs, as the music streaming looks to become “both productive and efficient.”

In a note to employees Monday, Spotify founder and chief executive Daniel Ek said the right-sizing of the workforce is crucial for the company to face the “challenges ahead.” He cited the the slow economic growth and rising capital costs among reasons for the job cuts.

“I recognize this will impact a number of individuals who have made valuable contributions. To be blunt, many smart, talented and hard-working people will be departing us,” he wrote in the note, which the company later published on the blog.

Spotify employs about 10,000 people, meaning that Monday’s move will impact over 1,500 employees.

The new wave of layoff follows Spotify cutting about 6% jobs in June this year and another few hundred employees in January.

“I realize that for many, a reduction of this size will feel surprisingly large given the recent positive earnings report and our performance. We debated making smaller reductions throughout 2024 and 2025,” wrote Ek.

“Yet, considering the gap between our financial goal state and our current operational costs, I decided that a substantial action to rightsize our costs was the best option to accomplish our objectives.”

More to follow.



Source by [author_name]

news7h

News7h: Update the world's latest breaking news online of the day, breaking news, politics, society today, international mainstream news .Updated news 24/7: Entertainment, Sports...at the World everyday world. Hot news, images, video clips that are updated quickly and reliably

Related Articles

Back to top button