The fact that the streaming platform Spotify will cut some of its employees became known from a post on the company’s official blog. The coming wave of cuts will be the third in 2023. According to Spotify CEO Daniel Ek, the cuts are due to the platform’s slow economic growth and its rising costs. Despite efforts to reduce them, the business cost structure is too large, so the service is forced to lay off some employees, the manager noted.
The cuts will affect 17% of the current workforce. According to estimates by The Verge and TechCrunch , according to the latest reporting , the company employs 9,241 people, so the cuts will affect about 1,500 employees.
Those laid off will be notified of the termination of cooperation from December 4, and a separate individual meeting will be held with each, Spotify noted. Dismissed employees will receive five months’ severance pay and pay for unused vacation time. The company noted that extended health insurance coverage will continue to operate during the benefit period. The December cuts will be Spotify’s third wave of layoffs in 2023.
The first round of cuts took place in January 2023 – then the company fired 6% of its staff (about 600 people), the second took place in June and cut about 200 more employees, but only from the podcast development division.