Streaming music service provider Spotify has laid off more than a thousand employees.
Daniel Ek, CEO of Spotify recently announced the mass layoff via online post. According to Ek, about 17% of employees lost their jobs due to cost-cutting measures and to narrow the gap between the company’s financial goal state and current operational costs. The CEO also mentioned that Spotify had a surplus hiring in 2020 and 2021, which led to increased growth and output, as well as operating costs.
In the post, the Spotify CEO talked about how they have too many people ‘dedicated to supporting work’ instead of ‘contributing to opportunities with real impact.’ The affected employees will be notified December 5, and severance based local notice period requirements and tenure. Ek shared how Spotify must adopt a ‘relentlessly resourceful’ pace if they want to be stronger next year. Spotify has several competitors, including Apple Music and YouTube Music.
