LONDON (AP) — Spotify says it’s axing 17% of its world workforce, the music streaming service’s third spherical of layoffs this 12 months because it strikes to slash prices whereas specializing in turning into worthwhile.
In a message to workers posted on the corporate’s weblog Monday, CEO Daniel Ek stated the roles had been being reduce as a part of a “strategic reorientation.” The publish didn’t specify what number of workers would lose their jobs, however a spokesperson confirmed that it quantities to about 1,500 folks.
Spotify had used low cost financing to broaden the enterprise and “invested significantly” in workers, content material and advertising and marketing in 2020 and 2021, the weblog publish stated.
But Ek indicated that the corporate was caught out as central banks began mountain climbing rates of interest final 12 months, which may gradual financial progress. Both are posing a problem, he stated.
“We now find ourselves in a very different environment. And despite our efforts to reduce costs this past year, our cost structure for where we need to be is still too big,” he stated.
Ek stated the “leaner structure” of the corporate will guarantee “Spotify’s continued profitability.”
Stockholm-based Spotify posted a web lack of 462 million euros (about $500 million) for the 9 months to September.
The firm introduced in January that it was axing 6% of complete employees. In June, it reduce employees by one other 2%, or about 200 staff, primarily in its podcast division.
Tech corporations like Amazon, Google, Microsoft, Meta and IBM have introduced tons of of hundreds of job cuts this 12 months.
Source: www.bostonherald.com”