Spotify to slash 1,500 jobs as tech sector layoffs continue
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Spotify has revealed plans to trim its workforce by 1,500 employees, making up 17 per cent of its staff, as it looks to continue streamlining costs.
Chief executive Daniel Ek said in a letter to staff that 17 per cent of the workforce must go in order for the streaming giant to be more efficient.
Ek said Spotify’s accelerated hiring during 2020 and 2021 was prompted by strong economic conditions, but its recent performance has prompted a rethink of strategy.
“By most metrics, we were more productive but less efficient. We need to be both,” Ek said.
“We debated making smaller reductions throughout 2024 and 2025,” Ek said. “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.”
Ek admitted this latest culling might appear drastic, especially in light of the recent positive earnings report and overall company performance.
Spotify turned a profit in its third quarter – its first in over a year – propelled by streaming services and global subscriber growth, with projected monthly listeners expected to hit 601m in the Christmas period.
The company previously laid off 600 employees in January and a further 200 in June.
It comes amid another wave of tech layoffs as tough economic conditions continue to bite the companies that expanded rapidly during the pandemic.