Spotify has laid off 17% of its overall workforce, equating to about 1,500 jobs across the company. CEO Daniel Ek shared the news in a blog post, saying that “economic growth has slowed dramatically and capital has become more expensive.”
The decisions trace back to investments Spotify made in 2020 and 2021 when the streamer took “advantage of the opportunity presented by lower-cost capital and invested significantly in team expansion, content enhancement, marketing, and new verticals.”
While the investments were initially profitable, a slowdown in growth has resulted in high operating costs that don’t match up to Spotify’s revenue or its financial goals. Ek wrote that the company debated making smaller cuts throughout 2024 and 2025 but had no choice but to commit to a wider round of layoffs.
The streamer has previously cut jobs in January and June with about 800 employees laid off between those two occasions.
Spotify said it will be paying employees five months of severance, as well as paying out their unused PTO. It also plans to work with those whose immigration status is tied to their jobs and will provide career support to all of those laid off.
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