Spotify to lay off 1,500 employees

Spotify has announced that it will lay off 1,500 employees to cut costs.

The company stated that this figure represents approximately 17% of its total workforce.

After laying off 600 employees in January, the music platform laid off another 200 people in June. These new layoffs will be the company's third round of job cuts this year.

Following the mass layoffs by technology companies at the beginning of the year, some companies such as Amazon and Microsoft-owned LinkedIn have begun to reduce their workforces once again.

Spotify CEO Daniel Ek explained in a letter to employees that the company had hired more staff in 2020 and 2021 due to lower capital costs.

The company, which turned a profit in the third quarter due to price increases in digital music services and growth in subscriber numbers across all regions, projected that its monthly listener count would reach 601 million in the holiday quarter.

The layoffs are part of Spotify's efforts to reduce costs to maintain its growth. The company has continued to increase its subscriber count in recent years, but competitors Apple Music and Amazon Music have also been seen growing rapidly.

In his letter to employees, Daniel Ek said, "This was a difficult decision, but we believe it is necessary for the company's long-term success."

SEVERANCE PAY

He also stated that the laid-off employees will receive severance pay and job placement assistance.

Spotify's layoffs are part of a general trend in the technology sector. It was noted that inflation and rising interest rates are causing technology companies to cut costs.