Spotify to cut 1,500 employees in third layoff round this year

STOCKHOLM, Dec 4 (Reuters) – On Monday, music streaming giant Spotify (SPOT.N) announced its decision to reduce its workforce by approximately 1,500 employees, constituting 17% of its total headcount. This move is aimed at cost reduction, following previous layoffs of 600 staff members in January and an additional 200 in June.

Following a trend set earlier in the year by various tech companies implementing job cuts, others are now following suit. Notable announcements in this regard include those from Amazon and Microsoft-owned LinkedIn.

In a communication addressed to the employees, Spotify CEO Daniel Ek explained that the company had expanded its workforce in 2020 and 2021, capitalizing on lower capital costs. While the company’s output has indeed increased during this period, Ek pointed out that much of this growth was contingent on having additional resources.