Spotify axes 17% of workforce in third round of layoffs this year

Spotify increases prices on premium subscriptions
Posted at 7:35 AM, Dec 04, 2023
and last updated 2023-12-04 07:35:09-05

LONDON (AP) — Spotify says it's axing 17% of its global workforce in the music streaming service's third round of layoffs this year.

It's trying to slash costs while focusing on becoming profitable.

In a message to employees posted on the company's blog Monday, CEO Daniel Ek said the jobs are being cut as part of a "strategic reorientation."

The post didn't specify how many employees would lose their jobs, but a spokesperson confirmed that it amounts to about 1,500 people.

Spotify had used cheap financing to expand the business but Ek indicated it was caught out as central banks started hiking interest rates last year.