Current:Home > NewsSpotify axes 17% of workforce in third round of layoffs this year-Angel Dreamer Wealth Society D1 Reviews & Insights
Spotify axes 17% of workforce in third round of layoffs this year
View Date:2024-12-23 14:32:51
LONDON (AP) — Spotify says it’s axing 17% of its global workforce, 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.
veryGood! (8536)
Related
- Is Kyle Richards Finally Ready to File for Divorce From Mauricio Umansky? She Says...
- Activists Laud Biden’s New Environmental Justice Appointee, But Concerns Linger Over Equity and Funding
- Oil Industry Moves to Overturn Historic California Drilling Protection Law
- More Mountain Glacier Collapses Feared as Heat Waves Engulf the Northern Hemisphere
- GM recalls 460k cars for rear wheel lock-up: Affected models include Chevrolet, GMC, Cadillac
- Pennsylvania’s Dairy Farmers Clamor for Candidates Who Will Cut Environmental Regulations
- Opinion: The global gold rush puts the Amazon rainforest at greater risk
- In Jacobabad, One of the Hottest Cities on the Planet, a Heat Wave Is Pushing the Limits of Human Livability
- Wicked Director Jon M. Chu Reveals Name of Baby Daughter After Missing Film's LA Premiere for Her Birth
- The Fed admits some of the blame for Silicon Valley Bank's failure in scathing report
Ranking
- Brianna “Chickenfry” LaPaglia Explains Why She’s Not Removing Tattoo of Ex Zach Bryan’s Lyrics
- The Decline of Kentucky’s Coal Industry Has Produced Hundreds of Safety and Environmental Violations at Strip Mines
- The racial work gap for financial advisors
- Amid a child labor crisis, U.S. state governments are loosening regulations
- West Virginia expands education savings account program for military families
- In ‘Silent Spring,’ Rachel Carson Described a Fictional, Bucolic Hamlet, Much Like Her Hometown. Now, There’s a Plastics Plant Under Construction 30 Miles Away
- In North Carolina Senate Race, Global Warming Is On The Back Burner. Do Voters Even Care?
- Amid a child labor crisis, U.S. state governments are loosening regulations
Recommendation
-
Investigators believe Wisconsin kayaker faked his own death before fleeing to eastern Europe
-
Finding Out These Celebrities Used to Date Will Set Off Fireworks in Your Brain
-
The banking system that loaned billions to SVB and First Republic
-
Amid a child labor crisis, U.S. state governments are loosening regulations
-
Olympic champion Lindsey Vonn is ending her retirement at age 40 to make a skiing comeback
-
The Decline of Kentucky’s Coal Industry Has Produced Hundreds of Safety and Environmental Violations at Strip Mines
-
Is Burying Power Lines Fire-Prevention Magic, or Magical Thinking?
-
The economics of the influencer industry, and its pitfalls