Spotify to cut workforce by 17% in latest round of staff reductions

Spotify Music streaming hub, Spotify, is to cut another 17% of its workforce as the company moves to minimise operational costs.

The news was announced in a public letter today from CEO Daniel Ek shared to Spotify employees. The Spotify boss said the organisational changes comes as part of its’ efforts to close the gap between financial income and its current operational costs.

According to reports, the latest round of staff reductions will mark the lost of another 1,500 jobs. In January Spotify announced it layoff 600 staff, followed by another 200 roles across it podcast unit in June.

The Sweden-founded streaming platform introduced prices hikes for its premium subscription services across more than 50 markets including the UK, US, Canada, Australia, Portugal and Spain.

In the UK Spotify premium packages will increase by £1 with the premium individual jumping from £9.99 to £10.99 and the premium student from £4.99 to £5.99. The music company’s premium duo offering and premium family is now priced at £14.99 and £16.99 respectively. While in the US Spotify premium bundles go up by $1, to $9.99 for premium individual, $5.99 for premium student, $14.99 for premium duo and $16.99 for premium family.

The streamer also announced last week it will begin to phase out its service in Uruguay in January 2024 and completely shut down the service in the region by February, following the passing of a budget bill that will see dramatic changes to the way music operates in the country.

Commenting on the staff reductions, EK said: “Embracing this leaner structure will also allow us to invest our profits more strategically back into the business. With a more targeted approach, every investment and initiative becomes more impactful, offering greater opportunities for success. This is not a step back; it’s a strategic reorientation. We’re still committed to investing and making bold bets, but now, with a more focused approach, ensuring Spotify’s continued profitability and ability to innovate. Lean doesn’t mean small ambitions; it means smarter, more impactful paths to achieve them.”

Tags: Spotify

Most Recent