Spotify to cut on 1,500 jobs in Q3, in an effort to control costs

Swedish music-streaming giant Spotify has announced a workforce reduction of 17%, equivalent to about 1,500 jobs, in an effort to control costs. CEO Daniel Ek described the decision as “difficult” and necessary due to a “dramatic” slowdown in economic growth. With approximately 9,000 employees, Ek emphasized the need for “substantial action to rightsize our costs” to align with the company’s objectives. While acknowledging the impact on departing staff, he highlighted the importance of the decision for Spotify’s financial stability.

The company recently reported its first quarterly profit in over a year, with €65 million (£55.7 million) in profits for Q3. Ek noted that the job cuts might feel surprisingly large despite positive recent results and explained that more drastic measures were deemed necessary for financial improvement. Spotify had previously made staff reductions earlier in the year, and Ek indicated that the company had contemplated smaller cuts in 2024 and 2025 before opting for the current action.

Despite initial spending to expand its business and secure exclusive content, Spotify has faced challenges in balancing costs. The company’s foray into exclusive podcast content, including deals with Michelle and Barack Obama and the Duke and Duchess of Sussex, has yielded mixed results, according to Ek.