Spo­ti­fy to lay off 17% of its work­force to ‘right­size’ com­pa­ny’s cost

Spo­ti­fy announced Mon­day that it will lay off 17% of its work­force, stat­ing that such cuts were nec­es­sary to “right­size” the costs of the com­pa­ny.
The lat­est round of lay­offs comes after the com­pa­ny hired many employ­ees in 2020 and 2021, which was done to take advan­tage of “low­er-cost cap­i­tal.” The total num­ber of employ­ees who will be affect­ed through this down­siz­ing of employ­ment is approx­i­mate­ly 1,500, accord­ing to a memo from Spo­ti­fy CEO Daniel Ek shared with the Wash­ing­ton Exam­in­er.
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“We debat­ed mak­ing small­er reduc­tions through­out 2024 and 2025,” Ek’s memo read. “Yet, con­sid­er­ing the gap between our finan­cial goal state and our cur­rent oper­a­tional costs, I decid­ed that a sub­stan­tial action to right­size our costs was the best option to accom­plish our objec­tives. While I am con­vinced this is the right action for our com­pa­ny, I also under­stand it will be incred­i­bly painfu …