Spotify is undergoing a significant restructuring, with the Financial Times revealing that the audio streaming giant plans to cut close to 20% of its employees worldwide in an effort to slash expenses and boost efficiency.
The cuts will affect approximately 17% of Spotify's staff, which translates into about 1,500 positions from its roughly 9,000-strong workforce.
Daniel Ek, the CEO of Spotify, addressed the sizable layoffs by explaining, "In light of the discrepancy between our desired financial outcomes and our current spending, I have concluded that downsizing our expenses significantly is essential for achieving our goals."
Despite achieving a subscriber count exceeding 220 million recently, Spotify continues to face challenges in achieving profitability. As a result, the company finds itself in a position where it must implement severe employee reductions. This follows an earlier reduction of 6% of its staff—or around 200 workers—earlier in June.