The online music company that is notorious for paying artists less than a penny per stream is now laying off a large portion of its workforce.
“Spotify said on Monday that it would cut nearly a fifth of its work force, its third round of layoffs so far this year, as it has struggled to become consistently profitable after spending aggressively to expand beyond music streaming into areas such as podcasting.
Spotify’s chief executive, Daniel Ek, wrote in a note to employees posted on the company’s website that the platform now needed to “rightsize” to account for a “very different environment.” Spotify, which is based in Stockholm, will let go of about 1,500 people, or 17 percent of its staff.
‘Economic growth has slowed dramatically and capital has become more expensive,’ Mr. Ek said. ‘Despite our efforts to reduce costs this past year, our cost structure for where we need to be is still too big.’
Spotify’s cuts come as the technology industry reckons with the end of a decade of rock-bottom interest rates that propelled their growth, prompting the industry’s giants like Amazon, Meta and Salesforce to cut costs and shed jobs. Monday’s moves, Mr. Ek said, were about ‘preparing for our next phase, where being lean is not just an option but a necessity.'”
For the rest of the story, visit The New York Times here.