Music streaming company Spotify has revealed plans to lay off 1,500 employees, which accounts for about 17% of its workforce.
Founder and CEO Daniel Elk mentioned that the company took advantage of the economic situation in 2020-21 to hire more employees. However, Spotify has not performed well enough to justify these hires.
“I recognize this will impact a number of individuals who have made valuable contributions,” he wrote in a company blog. “To be blunt, many smart, talented and hard-working people will be departing us.”
The impacted workers were being notified on Monday. The December layoffs are the latest in a series of job cuts at Spotify this year. The company cut about 200 jobs in January and then another 600 in June. After this week’s firings, Spotify will retain around 7,300 employees.
Despite exceeding predictions for user growth in the past quarter and expectations for surpassing this year’s fourth-quarter expectations, Mr. Elk stated that the layoffs were inevitable.
“I realize that for many, a reduction of this size will feel surprisingly large,” he wrote, “given the recent positive earnings report and out-performance. We debated making smaller reductions throughout 2024 and 2025.”
The economic environment has prompted several tech companies around the world to struggle, and layoffs have become an unfortunate reality. After Elon Musk shocked the tech industry by firing the majority of Twitter’s staff last year, other companies followed suit.
Driven by a tumultuous economic climate, popular tech companies such as Meta, Amazon, and Google have begun scaling back future projects and cutting staff, collectively firing thousands of workers this year.
Spotify Announces Layoff of 1,500 Employees in 2020
December 4, 2023
Read next
Biden’s Awkward Flag Moment Causes Uproar with Brazilian Leader Over Handshake Snub
September 21, 2023
President Biden left the Brazilian president visibly frustrated after he wandered off the stage at the United…
2 min read
Mexico, Venezuela restart repatriation flights amid pressure to curb soaring migration to U.S.
December 30, 2023
MEXICO CITY — Mexico and Venezuela introduced Saturday that they’ve restarted repatriation flights of…
2 min read
Rep. Marjorie Taylor Greene Calls for Impeachment of DHS Secretary Mayorkas
November 12, 2023
The lawmakers are set to vote on a resolution brought by Rep. Marjorie Taylor Greene calling for the impeachment…
3 min read
Alabama Politician Charged with Serious Voter Fraud Offenses
August 29, 2023
HUNTSVILLE, Ala. — An Alabama legislator was arrested Tuesday on felony voter fraud charges accusing him of…
1 min read