BUSINESS

Spotify Set To Lay Off 1,500 Employees

According to press reports, Spotify is set to lay off 17% of its global workforce, which is estimated to be 1,500 employees.

This move comes against the layoffs earlier this year of 600 people in January and an additional 200 in June.

The music streaming giant is continuing its effort to cut costs and work toward becoming profitable, said Spotify CEO Daniel Ek in a prepared statement.

“By most metrics, we were more productive but less efficient,” he said. “We need to be both.”

The layoffs come following a rare quarterly net profit of about $70.3 million in October. The company has never seen a full year’s net profit.

“I realize that for many, a reduction of this size will feel surprisingly large given the recent positive earnings report and our performance,” Ek said. “We debated making smaller reductions throughout 2024 and 2025. Yet, considering the gap between our financial goal … and our current operational costs, I decided that a substantial action to right-size our costs was the best option to accomplish our objectives.”

With the new layoffs, the company now expects to see a fourth-quarter loss between $100 million to $117 million after previously anticipating a $40 million profit.

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Readers Bureau, Contributor

 Edited by Jesus Chan

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