Spotify, the music-streaming giant, is slashing 1,500 jobs, about 17% of its workforce, as part of cost-cutting measures due to economic slowdown, according to CEO Daniel Ek.
He described the decision as “difficult” but necessary to align with their objectives and address slowed economic growth.
Ek acknowledged the hardship the cuts would bring, especially to those who made valuable contributions, stating, “To be blunt, many smart, talented, and hard-working people will be departing us.”
Despite a recent quarterly profit of €65m (£55.7m), which marked Spotify’s first profit in over a year due to increased subscribers and price hikes, Ek emphasized the need for significant cost reduction.
He admitted that despite the positive results, the scale of job cuts might seem surprisingly large. While smaller staff reductions were initially considered for the coming years, the company opted for more immediate and drastic action to stabilize its finances.
Spotify’s spending on business growth and securing exclusive content, including podcasts featuring figures like Michelle and Barack Obama, as well as the Duke and Duchess of Sussex, has been substantial.
Ek acknowledged the mixed success of these endeavors, citing, “The truth of the matter is some of it has worked, some of it hasn’t.”
The deal with Harry and Meghan, reportedly costing $25m (£19.7m) for 12 episodes delivered over two and a half years, ended in June.
Ek highlighted the varied success of their podcast content, indicating a mix of hits and misses in their exclusive content strategy.
Source-BBC
