Spotify to Lay Off 1,500 Employees
Spotify says it is planning to lay off 17% of its global workforce, amounting to around 1,500 employees, following layoffs earlier this year of 600 people in January and an additional 200 in June. The music streaming giant is continuing its effort to cut costs and work toward becoming profitable, said Spotify CEO Daniel Ek in a prepared statement. “By most metrics, we were more productive but less efficient,” he said. “We need to be both.” The layoffs come following a rare quarterly net profit of about $70.3 million in October. The company has never seen a full year net profit. “I realize that for many, a reduction of this size will feel surprisingly large given the recent positive earnings report and our performance,” Ek said. “We debated making smaller…