Sun. Jul 21st, 2024

Spotify is set to lay off 17 per cent of its global workforce, marking the third round of layoffs this year for the music streaming service, In a strategic move to cut costs and focus on profitability.

CEO Daniel Ek communicated the decision in a blog post on Monday, framing it as a “strategic reorientation.” While the post did not specify the exact number of job cuts, a spokesperson told news outlets that approximately 1,500 employees would be affected.

The announcement revealed that Spotify, which had used affordable financing for business expansion, had made substantial investments in employees, content, and marketing throughout 2020 and 2021.

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“We now find ourselves in a very different environment. And despite our efforts to reduce costs this past year, our cost structure for where we need to be is still too big,” he said.

This is the third such layoff for Spotify this year. Earlier in January, the company announced that it was letting 6 per cent of its total staff go. In June, just a few months later, Spotify again laid staff off by another 2 per cent, or about 200 workers, mainly in its podcast division.

In a related development, one of Gimlet’s flagship shows, Heavyweight, will be cancelled by Spotify after the completion of its current season. The team responsible for producing Heavyweight will reportedly face layoffs.

Spotify spokesperson Rosa Oh expressed pride in the team’s work on Heavyweight and assured a smooth transition for the series, hinting at a collaboration with the show’s creator for future endeavours.

Additionally, Stolen, another acclaimed podcast from Gimlet, is also set to be cancelled, as reported by Bloomberg. Like Heavyweight, Stolen will conclude its current season before potential exploration of new opportunities elsewhere. Both shows, having garnered acclaim, may find new homes following the conclusion of their respective runs.

(With inputs from agencies)

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