Spotify cuts six percent of workforce, latest big tech name to axe jobs
Spotify reported in its latest annual report that it had about 6,600 employees, which implies that 400 jobs are being axed
Swedish music streaming giant Spotify said Monday that it was cutting six percent of its global workforce, the latest tech company to cut costs with layoffs.
Spotify CEO Daniel Ek told employees that the cuts were part of a revamp involving a management shuffle, “and to bring our costs more in line, we’ve made the difficult but necessary decision to reduce our number of employees.”
"In hindsight, I was too ambitious in investing ahead of our revenue growth. And for this reason, today, we are reducing our employee base by about six percent across the company," he said on Spotify's official blog.
"I take full accountability for the moves that got us here today.”
Listed on the New York Stock Exchange, Spotify has invested heavily since its launch to fuel growth with expansion into new markets and, in recent years, exclusive content such as podcasts. Spotify has never posted a full-year net profit despite its success in the online music market.
Ek said Stockholm-based Spotify was no different. The company’s operating costs last year were double its revenue growth, a gap that would be “unsustainable long-term” in any economic climate, but even more difficult to close with “a challenging macro environment,” he said.
Spotify reported in its latest annual report that it had about 6,600 employees, which implies that 400 jobs are being axed.