BENGALURU: After laying off nearly 800 employees in January and June this year, streaming giant Spotify will fire another 1,500 employees or 17% of its workforce. In a letter to employees, CEO Daniel EK said economic growth has slowed dramatically and capital has become more expensive.
“This brings me to a decision that will mean a significant step change for our company. To align Spotify with our future goals and ensure we are right-sized for the challenges ahead, I have made the difficult decision to reduce our total headcount by approximately 17% across the company. I recognize this will impact a number of individuals who have made valuable contributions. To be blunt, many smart, talented and hard-working people will be departing us,” he said.
He pointed out that they debated making smaller reductions throughout 2024 and 2025 and that they decided that a substantial action to right size costs was the best option to accomplish its objectives. Embracing this leaner structure will also allow us to invest our profits more strategically back into the business. With a more targeted approach, every investment and initiative become more impactful, offering greater opportunities for success, he added.
Citing the macroeconomic environment, many top companies have started another round of layoffs. In October, Microsoft-owned LinkedIn announced its second round of layoff. It said it will be firing about 668 employees across various teams. It said roles will be impacted in the engineering, product, talent and finance arms.
Recently, reports suggested that Microsoft has cut more jobs than it announced in January. It announced 10,000 job cuts earlier this year. Last week it was reported that Broadcom will fire 1,267 VMware employees following its $69 billion acquisition.