Spotify announces it's firing 17% of its total staff due to the 'challenges ahead'

Spotify CEO Daniel Ek has announced that the company will be laying off 17% of its total staff as the company is facing 'challenges' ahead.

Published
2 minutes & 2 seconds read time

In what marks the third time this year, Spotify has announced it will be laying off 1,500 employees that have already been notified of their departure.

Spotify announces it's firing 17% of its total staff due to the 'challenges ahead' 4879

The news of the layoffs comes from company CEO Daniel Ek, who explained in a newsroom post that the cuts of 17% of the company's workforce was decidedly made to be immediate instead of incrementally over time. This decision was made by Ek, who wrote that he considered Spotify's financial goal state and its current operational costs, and elected to "right-size our costs" to "accomplish our objective".

Additionally, Ek explained that the workforce reduction of this caliber might come as a surprise to many employees considering the "recent positive earnings report and our performance". However, Spotify's CEO writes that this decision was made to close the gap "between our financial goal state and our current operational costs."

"Our cost structure for where we need to be is still too big," said Ek

Ek said to make the situation somewhat good for the now 1,500 people unemployed, it will be paying five months severance cover healthcare during that time, and will provide immigration/career support.

Buy at Amazon

Starfield: Standard Edition - Xbox Series X

TodayYesterday7 days ago30 days ago
$41.75$41.75$62.99
Buy at Newegg
$69.99$69.99-
* Prices last scanned on 2/23/2024 at 5:17 pm CST - prices may not be accurate, click links above for the latest price. We may earn an affiliate commission.

Jak joined the TweakTown team in 2017 and has since reviewed 100s of new tech products and kept us informed daily on the latest science, space, and artificial intelligence news. Jak's love for science, space, and technology, and, more specifically, PC gaming, began at 10 years old. It was the day his dad showed him how to play Age of Empires on an old Compaq PC. Ever since that day, Jak fell in love with games and the progression of the technology industry in all its forms. Instead of typical FPS, Jak holds a very special spot in his heart for RTS games.

Newsletter Subscription

Related Tags