Music streamer Spotify is laying off 17 percent of its global workforce in a move to slash costs.
This is the third round of layoffs the world’s largest music streaming service has had this year.
Driving the news: Spotify CEO Daniel Ek announced the job cuts in a blog post on Monday, which he described as part of a “strategic reorientation.”
- In total, around 1,500 people will lose their jobs.
- The company had previously invested in employees, content and marketing, but central banks rate hikes and slowed economic growth has forced Spotify to reduce its costs, Ek said in the blog post.
- Ek believes that the new “leaner structure” of the company will help ensure its continued profitability.
- Spotify is based in Stockholm and recorded a net loss of 462 million euros – about $500 million – for the first three quarters of the year.
- The company already cut six percent of its total staff in January and another two percent in June.
- Other tech companies such as Amazon, Google, Microsoft, Meta and IBM have also cut jobs this year.