Spotify Announces 17% Workforce Reduction

CEO Daniel Ek cites need to 'rightsize' costs despite recent positive performance, promises strategic reinvestment into the business.

Spotify CEO Daniel Ek announced a 17% reduction in the company's global workforce, equating to approximately 1,500 jobs.
The layoffs are part of a larger effort to 'rightsize' costs and adjust for a slowdown in growth.
Despite a positive earnings report and performance, Ek cited the gap between Spotify's financial goal state and current operational costs as the reason for the substantial layoffs.
Affected employees will receive severance pay, healthcare coverage during their severance period, and outplacement services for two months.
Ek emphasized the need for Spotify to become 'relentlessly resourceful' and to change how it operates, promising to invest profits more strategically back into the business.