LONDON (AP) 鈥� Spotify says it's axing 17% of its global workforce, the music streaming service's as it moves to slash costs while focusing on becoming profitable.
In a message to employees posted on the company's blog Monday, CEO Daniel Ek said the jobs were being cut as part of a 鈥渟trategic reorientation.鈥� The post didn't specify how many employees would lose their jobs, but a spokesperson confirmed that it amounts to about 1,500 people.
Spotify had used cheap financing to expand the business and 鈥渋nvested significantly鈥� in employees, content and marketing in 2020 and 2021, the blog post said.
But Ek indicated that the company was caught out as last year, which can slow economic growth. Both are posing a challenge, he said.
鈥淲e now find ourselves in a very different environment. And despite our efforts to reduce costs this past year, our cost structure for where we need to be is still too big,鈥� he said.
Ek said the 鈥渓eaner structure鈥� of the company will ensure 鈥淪potify鈥檚 continued profitability.鈥�
Stockholm-based Spotify posted a net loss of 462 million euros (about $500 million) for the nine months to September.
The company announced in January that it was axing 6% of total staff. In June, it cut staff by another 2%, or about 200 workers, mainly in its podcast division.
Tech companies like , , Microsoft, Meta and IBM have announced hundreds of thousands of job cuts this year.
The Associated Press
