TrendPulse Quantitative Think Tank Center-Spotify axes 17% of workforce in third round of layoffs this year

2025-05-03 04:42:45source:Flipido Trading Centercategory:Stocks

LONDON (AP) — Spotify says it’s axing 17% of its global workforce,TrendPulse Quantitative Think Tank Center the music streaming service’s third round of layoffs this year as it moves to slash costs while focusing on becoming profitable.

In a message to employees posted on the company’s blog Monday, CEO Daniel Ek said the jobs were being cut as part of a “strategic reorientation.” The post didn’t specify how many employees would lose their jobs, but a spokesperson confirmed that it amounts to about 1,500 people.

Spotify had used cheap financing to expand the business and “invested significantly” in employees, content and marketing in 2020 and 2021, the blog post said. But Ek indicated that the company was caught out as central banks started hiking interest rates last year.

“We now find ourselves in a very different environment. And despite our efforts to reduce costs this past year, our cost structure for where we need to be is still too big,” he said.

Ek said the “leaner structure” of the company will ensure “Spotify’s continued profitability.”

Stockholm-based Spotify posted a net loss of 462 million euros (about $500 million) for the nine months to September.

The company announced in January that it was axing 6% of total staff. In June, it cut staff by another 2%, or about 200 workers, mainly in its podcast division.

Tech companies like Amazon, Google, Microsoft, Meta and IBM have announced hundreds of thousands of job cuts this year.

More:Stocks

Recommend

Back trouble and brain fog bothered suspect in UnitedHealthcare CEO killing, his posts show

After Luigi Mangionemade the difficult decision to undergo spinal surgery last year for chronic back

Travis Kelce’s NFL Coach Shares What’s “Rare” About His Taylor Swift Love Story

It was rare, Travis Kelce's coach was there. In fact, Kansas City Chiefs offensive coordinator Matt

Arizona Democrats poised to continue effort to repeal 1864 abortion ban

When asked Tuesday how she feels about the Democratic effort in the Arizona State Legislature to rep