Spotify Technology SA has announced its intention to reduce its workforce by approximately 17%, marking the third time this year that the streaming service has implemented job cuts.
Earlier in the year, Spotify reduced about 6% of its workforce in January and an additional 2% in June. I Photo: Focal Foto Flickr
Earlier in the year, Spotify reduced about 6% of its workforce in January and an additional 2% in June, as reported by Lucas Shaw for Bloomberg.
Affected employees will be notified on Monday and are scheduled to meet with human resources by the end of the day on Tuesday, according to a statement from the music streaming company.
The cuts are expected to impact approximately 1,500 people, as confirmed by a spokesperson. Despite anticipating its most substantial user growth this year, exceeding 100 million users, Spotify reported a rare profit in the last quarter.
However, CEO Daniel Ek mentioned that Spotify is still grappling with excessive spending.
The company has historically operated at a loss due to licensing agreement terms with music rights holders. Although it initially invested billions in podcasting to diversify its business model, Spotify has since scaled back its investment in original audio series.