Spotify Plans to Lay Off 1,500 Employees

Spotify, the giant music streaming company, announced today, Monday, that it will lay off approximately 1,500 employees, which is equivalent to 17% of its workforce, in order to reduce costs. This follows the layoff of 600 employees in January and another 200 in June. Spotify's CEO, Daniel Ek, stated in a message to employees that the company hired more people in 2020 and 2021 due to a decrease in capital costs and increased production, a significant part of which was linked to acquiring more resources. Following a round of job cuts early this year, some tech companies, from Amazon to LinkedIn, owned by Microsoft, have begun to reduce their workforces again. Spotify has invested over a billion dollars to build its streaming business, signing contracts with celebrities like Kim Kardashian, Prince Harry, and his wife Meghan Markle, and has expanded its market presence in most countries worldwide in an effort to reach one billion users by 2030.