Spotify is laying off 17% of its workforce, roughly 1,500 jobs, as part of a cost-cutting measure to address a slowdown in growth, according to an email from CEO Daniel Ek, CNBC reports.
Ek explained in an internal memo that the company had hired too many employees in 2020 and 2021 when capital was more accessible for tech companies to invest in team expansion.
Spotify reported a profit of €65 million ($70.7 million) for the third quarter, attributed to reduced spending on marketing and personnel. The company has been diversifying its offerings by entering the podcast and audiobook markets and raised subscription plan prices earlier this year.
