Spotify has announced job cuts for 17% of its workforce — around 1,500 employees.
In a note to employees, Spotify CEO and founder Daniel Ek said the decision to reduce staff numbers was made “to align Spotify with our future goals and ensure we are right-sized for the challenges ahead”.
It marks the third and biggest round of job cuts at the streaming service this year.
Overall, Spotify has reported $AU757 million in losses in the first nine months of 2023 — almost three times what its reported losses were for the same time last year.
It coincided with changes to how Spotify pays royalties to record labels and music publishers.
However, from July to September this year, Spotify made a profit of $AU52 million. In the last 24 hours, its shares have increased in value by about 7%.
Spotify job cuts
Employees impacted by the cuts will receive an average of about five months of severance pay (also known as redundancy pay).
Spotify has not specified which jobs will be impacted, and in which of its offices. However, it said employees would be notified today.