Spotify to lay off 17% employees worldwide
CEO Daniel Ek wrote in a blog that impacted employees would be supported with severance packages, PTO, healthcare coverage, and immigration and career support
In the latest spate of firings from the tech sector, audio streaming company Spotify has announced that it will be letting go of 17% of its workforce.
This is the third round of job cuts at the tech company. In January, it laid off 600 employees and 200 in June this year.
CEO Daniel Ek wrote in a blog post: “To align Spotify with our future goals and ensure we are right-sized for the challenges ahead, I have made the difficult decision to reduce our total headcount by approximately 17% across the company.
“I recognize this will impact a number of individuals who have made valuable contributions. To be blunt, many smart, talented and hard-working people will be departing us.”
Ek wrote that impacted employees will be given a severance package, PTO, healthcare coverage during the transition period, immigration support and career support.
By adopting a leaner structure, Ek wrote, the company will invest its profits more strategically back into the business. “With a more targeted approach, every investment and initiative becomes more impactful, offering greater opportunities for success. This is not a step back; it’s a strategic reorientation. We’re still committed to investing and making bold bets, but now, with a more focused approach, ensuring Spotify’s continued profitability and ability to innovate. Lean doesn’t mean small ambitions; it means smarter, more impactful paths to achieve them,” he wrote.
Spotify recently initiated a global media pitch with Lodestar UM currently serving as the incumbent agency handling its media planning and buying business.
While the company didn't confirm, an industry insider told e4m, "It is one of the biggest global pitches of the year, and all major agencies are aggressively vying for the account,"
