Spotify will lay off 17% of its staff

MADRID, 4 Dic. (EUROPA PRESS) -

The streaming music production and distribution platform Spotify has announced a workforce adjustment that will affect around 17% of its workforce, which will mean the departure of more than 1,500 people, as a result of the impact of the slowdown in the growth and the increase in the cost of capital.

The platform, which at the beginning of 2023 undertook a round of layoffs that affected 6% of its staff and in the summer cut hundreds of jobs in the podcast unit, has assured that its cost structure "is still too large", despite of efforts to reduce them in the last year.

"We discussed making smaller reductions throughout 2024 and 2025. However, considering the gap between our financial target state and our current operating costs, I decided that substantial action to correct our costs was the best option to achieve our objectives," explained Daniel Ek, CEO of Spotify.

Spotify obtained net profits of 65 million euros in the third quarter of the year, compared to losses of 166 million euros recorded in the same period of the previous year, while revenues increased by 10% between July and September, to 3,357 million euros.

The number of users was 574 million, 25.8% more than a year ago. Of that number, 226 million users were paid users, while another 361 million used the app for free.