Spotify, the world’s number one streaming company, announced this Monday that in order to reduce costs it has dispensed with fences.to 1,500 jobs, which is equivalent to a 17% reduction in its workforce.
This would be the third wave of personnel cuts. Previously, the Swedish group had already announced in January the elimination of 600 jobs and another 200 in June in its podcast division.
Likewise, these measures add to a series of layoffs that have shaken the technology sector since the beginning of 2023, affecting giants such as Meta, Alphabet and Amazon.
“I am aware that for many, a reduction of this magnitude may seem surprising given the recent positive report on profits and our results,” said Daniel Ek, CEO Daniel Ek in a letter to employees consulted by AFP.
In the third quarter, the group recorded an exceptional net profit of US$70 million (65 million euros), and a 26% increase in the number of its active users to 574 million. However, the company indicates that The layoffs will mean charges of between US$146 and US$157 million in the fourth quarter, mainly for payments related to severance pay.
Ek added: “Despite our efforts to reduce costs last year, our cost structure to achieve our objectives is still too large.”
Source: Larepublica
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