Spotify Technologies SA is set to reduce its workforce by 17%, affecting around 1,600 positions globally as it bids to increase efficiency amid a slowdown in growth.
Currently employing 9,300 people worldwide, the streaming giant has a workforce of 881 in the UK.
At the moment, it is unknown where the axe will fall.
Daniel Ek, the CEO of Spotify, emphasised the necessity of this measure to align the company’s operational costs with its financial goals.
Despite acknowledging the difficulty of this decision, he stressed that it is essential for the long-term health of the company.
This announcement is part of a series of job reductions Spotify has implemented throughout the year.
Spotify to lay off 17% of employees — read the full memo CEO Daniel Ek sent to staff https://t.co/n8BYhajCEW pic.twitter.com/5NMpvUa6pY
— CNBC International (@CNBCi) December 4, 2023
The company previously announced the elimination of about 600 positions in January, followed by a reduction of around 200 jobs in its podcasting unit later in the year.
Additionally, Spotify has increased subscription fees in various markets, including the UK, the US, and Australia, attributing the hike to rising costs.
These measures are part of Spotify’s broader strategy to streamline operations and build a stronger company in 2024.