The world’s leading audio platform company Spotify announced this Monday that it would lay off “about 17%” of workers to cut costs in the context of a “dramatic” slowdown in economic growth.
17% corresponds to 1,500 workers who will be laid off.
“To align Spotify with our future goals and ensure we are adequately sized to meet the challenges ahead, I have made the difficult decision to reduce the company’s overall headcount by approximately 17%,” CEO Daniel Ek wrote in a letter to group employees. France Presse reports this.
In October, the Swedish music platform announced a return to operating profit in the third quarter of this year after several negative quarters, recording 32 million euros.
“I recognize that a reduction of this magnitude may come as a surprise to many given our recent positive earnings and operating results report,” CEO Daniel Ek wrote in the same document.
In 2020 and 2021, Ek said the company “took advantage of the opportunity presented by cheaper capital and invested heavily in expanding the team, improving content, marketing and new verticals.”
“However, now we are faced with completely different conditions. Despite our cost reduction efforts over the past year, our cost structure to achieve our goals is still too high,” he added.
In 2017, the company employed about three thousand employees, and by the end of 2022 their number tripled and reached 9,800.
Since its inception, the platform has never posted a full-year net profit and only rarely posts a quarterly profit, despite its success in the online music market.
Author: Lusa
Source: CM Jornal
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