LONDON (AP) — Spotify says it’s axing 17% of its international workforce, the music streaming service’s third spherical of layoffs this 12 months because it strikes to slash prices whereas specializing in changing into worthwhile.
In a message to staff posted on the corporate’s weblog Monday, CEO Daniel Ek mentioned the roles had been being minimize as a part of a “strategic reorientation.” The publish didn’t specify what number of staff would lose their jobs, however a spokesperson confirmed that it quantities to about 1,500 individuals.
Spotify had used low cost financing to increase the enterprise and “invested considerably” in staff, content material and advertising in 2020 and 2021, the weblog publish mentioned.
However Ek indicated that the corporate was caught out as central banks began climbing rates of interest final 12 months, which may gradual financial development. Each are posing a problem, he mentioned.
“We now discover ourselves in a really totally different surroundings. And regardless of our efforts to cut back prices this previous 12 months, our price construction for the place we must be remains to be too massive,” he mentioned.
Ek mentioned the “leaner construction” of the corporate will guarantee “Spotify’s continued profitability.”
Stockholm-based Spotify posted a internet lack of 462 million euros (about $500 million) for the 9 months to September.
The corporate introduced in January that it was axing 6% of whole employees. In June, it minimize employees by one other 2%, or about 200 staff, primarily in its podcast division.
Tech corporations like Amazon, Google, Microsoft, Meta and IBM have introduced a whole lot of 1000’s of job cuts this 12 months.