CEO Daniel Ek says Spotify was ‘more productive but less efficient’ in 2022 and 2023.
Spotify is reducing its employee headcount by approximately 17%. The company had 9,241 full-time employees at the end of Q3, so these job cuts will affect about 1,500 people.
Spotify was “more productive but less efficient” in 2022 and 2023, CEO Daniel Ek wrote in a company-wide memo. Spotify considered smaller layoffs over 2024 and 2025, he said, but ultimately decided on a larger round of job cuts given “the gap between our financial goal state and our current operational cost.”
“Embracing this leaner structure will also allow us to invest our profits more strategically back into the business.
