Swedish music-streaming giant Spotify has announced it is cutting 17% of its workforce, or about 1,500 jobs, as the company seeks to clamp down on costs.
Chief executive Daniel Ek said he had made the “difficult” decision with economic growth slowing “dramatically.”
Spotify employs about 9,000 people, and Mr. Ek said “substantial action to rightsize our costs” was needed for the company to meet its objectives.
He added that he understood the cuts would be “incredibly painful for our team”.
In its latest results, Spotify reported a profit of €65m for the three months to September – its first quarterly profit for more than a year – helped by price rises and higher subscriber numbers.
The tech company has been expanding worldwide as it seeks to reach a billion users by 2030. It currently has 601 million of them, up from 345 million at the end of 2020.
Mr. Ek said that given the recent “positive” results, the job cuts being announced “will feel surprisingly large” for many people.
He mentioned that Spotify had considered making smaller reductions during 2024 and 2025 but decided that more drastic action was needed to improve the company’s finances.
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