Music: Music streaming service Spotify is cutting around 1,500 jobs

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Music
Music streaming service Spotify is cutting around 1,500 jobs

The Swedish company is considered the clear number one in music streaming, ahead of Apple and Amazon. photo

© Fabian Sommer/dpa

Despite an increase in the number of users and a price increase, Spotify boss Ek does not yet believe he is on the safe side – and is announcing tough measures.

The music streaming service Spotify wants to cut around 1,500 jobs. About 17 percent of employees would have to leave Spotify, company boss Daniel Ek wrote in a letter published on the Spotify website on Monday. He cited slowing economic growth and increased interest rates as reasons. This also applies to Spotify. At the end of 2022, the Stockholm-based company had almost 8,400 employees. A spokesman said that around 1,500 jobs would be affected by the cuts.

He was aware that a cut of this magnitude would seem surprisingly high to many given the recent positive earnings report, Ek continued. Spotify made it into the black in the third quarter after an increase in user numbers and a price increase. The Swedish company is considered the clear number one in music streaming, ahead of Apple and Amazon.

According to Ek, smaller staff cuts in the next two years were also discussed. “However, given the gap between our financial goals and our current operating costs, I have decided that a comprehensive measure to adjust our costs is the best option to achieve our goals,” the manager wrote.

Employees affected by the workforce reductions should receive severance pay and remaining vacation days should be paid out.

dpa

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