Spotify is Laying Off 17% of its Workforce

According to Daniel Ek, the CEO and co-founder of Spotify, as part of the cost-cutting strategy, Spotify, the latest technology company, will lay off around 17% of the workforce.

This Swedish audio streaming app will lay off 1,500 employees from its 9,241 crew worldwide. In 2023, this is the third time Spotify is reducing the workforce.

Amid increasing the subscription fee of premium services, the company released 600 employees in January, and 200 more layoffs came in July.

According to the company’s CEO, they are focused on making more minor reductions in the Spotify team throughout 2023, 2024, and 2025.

The memo shared by the CEO of the audio streaming platform further says that the employee count has significantly increased in 2020 and 2021.

Due to the increased headcount, the company seemed more productive in 2021 and 2022.

But in recent months, Spotify failed to attract a more extensive customer base, pushing the company to lay off 1,500 members of its workforce.

Each employee will get a salary of five months and other healthcare benefits during this period. These employees will be free to work in another firm after two months.