What you must know
- Spotify founder and CEO Daniel Ek introduced immediately that the corporate is reducing 1,500 jobs in one other spherical of layoffs.
- Ek justified the layoffs as a step in the best course in establishing a leaner firm.
- This comes on the heels of the music streaming service shedding 600 workers earlier this 12 months and one other 200 after consolidating its podcasting group.
Spotify is outwardly not carried out shedding its workers. On the heels of reducing about 600 of its staff, the music-streaming large introduced that it’s as soon as once more decreasing its headcount by 17% this time.
Daniel Ek, Spotify’s founder and CEO, wrote in regards to the layoffs immediately in a memo despatched to workers, the place he attributed the job cuts to rising prices and a slowing financial system. Ek justified the newest spherical of layoffs as the best step in the direction of making the corporate leaner and balancing productiveness and effectivity.
“In the present day, we nonetheless have too many individuals devoted to supporting work and even doing work across the work somewhat than contributing to alternatives with actual influence,” Ek wrote. “As we’ve grown, we’ve moved too distant from this core precept of resourcefulness.”
Based mostly on the corporate’s Q3 earnings report, Spotify maintained a headcount of 9,241 workers, which implies that these newest job cuts are anticipated to influence greater than 1,500 staff.
These impacted workers will now obtain round 5 months of severance pay, throughout which the corporate will proceed to cowl their healthcare bills, based on the memo from Ek.
This newest spherical of job cuts follows the 600-employee layoff earlier this 12 months, in addition to an extra 200-worker discount after consolidating its podcast group.
Ek additional highlighted a “hole between our monetary aim state and our present operational prices.” The billionaire CEO added that Spotify’s bloated headcount on account of mass pandemic hiring meant a misappropriation of firm sources and the onset of redundant work, which additionally contributed to the current layoffs.
Whereas the layoffs are extra of the identical bitter information, the corporate emphasizes that it’s “nonetheless dedicated to investing and making daring bets, however now, with a extra centered method, making certain Spotify’s continued profitability and skill to innovate.” This renewed give attention to innovation is no surprise, contemplating the corporate entered the audiobook area final 12 months.
The corporate’s announcement immediately follows a barrage of great layoffs from different main tech manufacturers this 12 months, together with Amazon (which lower 18,000 jobs in its largest layoff in historical past), Meta (which laid off 5,000 workers), and Google (which decreased its headcount by “a whole bunch”).
