Spotify is reducing its workforce by 17% in one the biggest layoffs in the audio streaming platform this year.
The move will impact 1,500 employees, who will be notified on Monday, a report from Bloomberg said.
The layoffs are part of the company’s effort to turn it “right sized”, and to align with the company’s future goals.
Spotify CEO Daniel EK in statement said the company has too many people dedicated to supporting work rather than contributing to opportunities with real impact.
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Ek further shared that the company had debated making smaller cuts over the next two years but decided on a “substantial action” to get costs in line, the report said.
The company projected operating losses for the fourth fiscal quarter in the range of €93 million, citing charges from severance payments and related real estate changes. It has previously projected operating income of €37 million.
The cuts come post growth period for the company. With the company having doubled its workforce since 2020.
Earlier this year, Spotify cut 6% of its workforce, with the company’s CEO stating they were too ambitious in investing ahead of revenue growth. In all the company has laid off more than 2,000 people this year.