Spotify Technology is cutting 17% of its workforce, marking at least the third time that the streaming service has carried out mass layoffs this year in an effort to shrink costs and drive profitability.
Employees affected by the layoffs will be notified on Monday, the music streaming company said in a statement. Roughly 1,500 jobs are being eliminated, a spokesperson said.
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The streaming audio giant is on pace to add more than 100 million users this year — its biggest year yet — and
"We still have too many people dedicated to supporting work and even doing work around the work rather than contributing to opportunities with real impact," Ek said in the statement. "More people need to be focused on delivering for our key stakeholders — creators and consumers."
Spotify projected operating losses for the fourth fiscal quarter in the range of $101 million to $116 million, citing charges of $140 million to $156 million from severance payments and related real estate changes. It had previously projected operating income of $40 million.
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Ek said that the company had debated making smaller cuts during the next two years but ultimately decided on a "substantial action" to get costs in line.
