Companies

Spotify to sack 17% officials, second layoff in 2023

Spotify has announced that the company will reduce its total headcount by around 17 per cent across the company, after laying off 6 per cent of its staff in January 2023 citing higher costs.

Spotify made the announcement in an email on Monday, December 4.

In the latest third quarter, the company swung to a profit aided by price hikes in its streaming services and growth in subscribers in all regions, and forecast that its number of monthly listeners would reach 601 million in the holiday quarter.

Spotify CEO, Daniel Ek, told Reuters at that time the company was still focusing on efficiencies to get more out of each dollar.

READ ALSO: Spotify: Asake, Burna Boy, Davido most streamed singers in 2023

On Monday, he said a reduction of this size would feel surprisingly large given the recent positive earnings report and its performance.

Daniel Ek said in a mail to employees: “We debated making smaller reductions throughout 2024 and 2025.

“Yet, considering the gap between our financial goal state and our current operational costs, I decided that a substantial action to rightsize our costs was the best option to accomplish our objectives.”

The Star

Segun Ojo

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