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Spotify lays off 17% of its workforce in the third round of layoffs this year

Spotify to cut jobs to 200 employees in the podcast division

Spotify, the popular music-streaming platform, has announced a workforce reduction in order to increase efficiency. The company will eliminate 17% of its positions, affecting approximately 1500 employees.

The move is part of a strategic decision to better manage expenses. In response to these reductions, Spotify CEO Daniel Ek shared a blog post with employees in which these changes were communicated. Despite the company’s overall success, Ek highlighted the global economic challenges. Spotify has reconsidered its spending and assessed the necessary workforce due to the increased costs, particularly in obtaining funds for business expansion.

Furthermore, he stated that, despite efforts to cut costs, Spotify is still overspending. As a result, maintaining a lean approach is no longer a choice but a necessity for the company right now. He acknowledged the impact on individuals who have made significant contributions, stating that many intelligent, talented, and hardworking individuals would be let go.

For those who are leaving, the company strives to ensure their well-being by offering a monetary package based on their length of service. This will also include compensation for any unused vacation days. Furthermore, the company will continue to provide healthcare coverage for a set period of time and will assist with immigration issues related to employment. Employees who are leaving will also have access to job placement services.

While Spotify is focused on optimising resource utilisation, the emphasis is on making a significant impact with available resources, according to Ek. The company recognises that increasing the number of employees does not always imply increased effectiveness.

The recent announcement is the third instance of layoffs for the Stockholm-based company this year. It reduced its workforce by 200 employees in June 2023, primarily from its podcast unit.

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