Spotify announced that 17% of employees were laid off; see details

Spotify will soon lay off around 1,500 employees, or about 17% of the company. According to the company’s CEO, Daniel Ek, the decision is an attempt to reduce operating costs.

The wave of layoffs at Spotify was announced in a memo sent to employees. The company currently has around 9,200 employees, according to the latest report.

“To align Spotify with our future goals and ensure we are right-sized for the challenges ahead, I have made the difficult decision to reduce our total headcount company-wide by approximately 17%,” Ek said in the statement.

“I know this will impact so many people who have made valuable contributions,” he added.

According to the CEO, size of cut It is due to the company’s “gap between its financial target and its operational costs.” “I decided that the best option to achieve our goals would be significant actions to resize our costs,” he explained.

This is the third time Spotify has suffered a wave of layoffs. The first occurred in January and affected 6% of the workforce, while the second resulted in the layoff of 2% of the team in June.

Spotify has nearly doubled its headcount during the covid-19 pandemic, according to The Wall Street Journal website. But now the company is “in a very different context.”

Ek said all laid-off employees will receive five months of unemployment benefits. The health plan will also be maintained for the same period.

The wave of layoffs will affect the entire company, so it shouldn’t lead to a change in strategy in a particular segment.