Spotify’s stock price rose by more than 8% on Monday, December 4, 2023, after the company announced that it would be laying off 17% of its workforce. This is the third round of layoffs that Spotify has implemented this year, as it seeks to reduce costs and improve its profitability.
The layoffs are expected to affect about 1,500 employees across all of Spotify’s business units. The company said that it is making these cuts in response to a “slowdown in growth” and the need to “rightsize” its costs.
Despite the layoffs, Spotify’s stock price has more than doubled this year. Investors are hopeful that the company’s cost-cutting measures will help it to improve its margins and become more profitable in the long run.
Spotify is laying off 1,500 employees
Spotify is laying off 1,500 employees, or about 17% of its workforce, in an effort to cut costs and improve its profitability. The company has been struggling to grow its subscriber base in recent months, and it is also facing increased competition from other music streaming services such as Apple Music and Amazon Music.
The layoffs are expected to affect employees across all of Spotify’s business units, including engineering, marketing, and sales. The company said that it is providing severance packages and outplacement services to affected employees.
Spotify’s CEO, Daniel Ek, said in a memo to employees that the layoffs are a “difficult but necessary decision” that will “help us to become a more efficient and profitable company.” He also said that the company is committed to investing in its core business and expanding into new markets.
The layoffs are the latest in a series of cost-cutting measures that Spotify has taken in recent months. The company has also slowed hiring and reduced its marketing budget.
