December 04, 2023 – Spotify, in an email statement today, announced its decision to lay off 1,500 employees, constituting 17% of its workforce, citing “rising costs.” This comes after the company had already let go of 600 employees in January and another 200 in June of this year.
Earlier reports revealed that Spotify posted its first quarterly profit since 2021, with a Q3 2023 revenue of €320 million (approximately ¥2.49 billion), thanks to higher profit margins and reduced marketing and personnel expenses. However, Spotify’s CEO, Daniel Ek, emphasized the company’s ongoing commitment to efficiency, striving to “get more out of every dollar.”
Today, Daniel Ek stated that, despite recent positive earnings reports and performance, and considering the continuous increase in employee costs, Spotify plans to implement further staff reductions to enhance profitability:
“We discussed fewer layoffs for 2024 and 2025. However, given the gap between our financial goals and our current operating costs, I’ve ultimately decided to take ‘substantial action’ to optimize our expenses in line with our objectives.”
