Image: STEFANI REYNOLDS (AFP)
The Swedish music streaming service Spotify wants to cut around 1,500 jobs. About 17 percent of employees would have to leave Spotify, company boss Daniel Ek wrote in a letter published on the Spotify website on Monday. He cited slowing economic growth and increased interest rates as reasons. At the end of 2022, the Stockholm-based company had almost 8,400 employees. Around 1,500 jobs will be affected by the cuts, a spokesman said.
He was aware that a cut of this magnitude would seem surprisingly high to many given the recent positive earnings report, Ek continued. Spotify made it into the black in the third quarter this year after an increase in user numbers and a price increase. The Swedish company is considered the clear number one in music streaming, ahead of Apple and Amazon.
According to Ek, smaller staff cuts in the next two years were also discussed. “However, given the gap between our financial goals and our current operating costs, I have decided that a comprehensive measure to adjust our costs is the best option to achieve our goals,” the manager wrote. Employees affected by the workforce reductions should receive severance pay and remaining vacation days should be paid out.
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