Spotify CEO Daniel Ek announced the layoff decision to employees on Monday morning. The information was released simultaneously.
Spotify is laying off as much as 17%. employees. Reasons given
Spotify will lay off a total of 17% in December. the entire team, which – taking into account the current number of employees – translates into approx. 1.5 thousand. people. Daniel Ek explains that this decision had to be made due to the need to optimize costs and adapt to the new, more difficult environment – primarily the “drastic slowdown in economic growth”.
According to Ek, laying off a huge part of the staff is the only way to reduce the company’s costs and achieve Spotify’s business goals. The company’s CEO added that smaller job cuts were considered, but this option was not possible due to “discrepancies between our financial goal and current operating costs.”
To adapt Spotify to [realizacji] our future goals and to ensure that we are adequately prepared for the challenges ahead, I have made the difficult decision to reduce total headcount across the company by approximately 17%. I realize that this will impact many people who have made valuable contributions here. Simply put, many smart, talented and hard-working people will leave us
– wrote Daniel Ek in a letter to employees. He added that he is aware of the fact that this is an extremely painful step for the dismissed people and the entire team. He also emphasized that he was convinced that this was the right decision for the entire company.
The huge layoffs at Spotify are partly the result of a very large increase in the number of employees in 2020-2021, when during the pandemic, many technology companies drastically increased employment and invested heavily in development. Daniel Ek assured that each dismissed employee will be able to count on severance pay in the amount of five times the salary, health care during notice and other appropriate assistance.
Like , this is another, but definitely the largest, round of layoffs at Spotify this year. In January, the company had to lay off approximately 600 employees (approx. 6% of the entire team), and in June, 200 jobs in the podcast department were eliminated. In the middle of the year, Spotify also raised
Source: Gazeta
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