Spotify to reduce staff by 17% in second layoff this year By Reuters

© Reuters. FILE PHOTO: Small collectible figurines are seen in entrance of displayed Spotify emblem on this illustration taken February 11, 2022. REUTERS/Dado Ruvic/Ilustration/File Photograph

STOCKHOLM (Reuters) – Spotify (NYSE:) will cut back its whole headcount by round 17% throughout the corporate, it stated in an electronic mail on Monday, after laying of 6% of this employees in January citing increased prices.

Within the newest third quarter, the corporate swung to a revenue aided by value hikes in its streaming providers and development in subscribers in all areas, and forecast that its variety of month-to-month listeners would attain 601 million within the vacation quarter.

CEO Daniel Ek advised Reuters at the moment the corporate was nonetheless specializing in efficiencies to get extra out of every greenback.

On Monday, he stated a discount of this dimension will really feel surprisingly massive given the latest optimistic earnings report and its efficiency.

“We debated making smaller reductions all through 2024 and 2025,” CEO Daniel Ek stated in a mail to staff.

“But, contemplating the hole between our monetary objective state and our present operational prices, I made a decision {that a} substantial motion to rightsize our prices was the best choice to perform our aims.”