SAN FRANCISCO: Audio streaming and media services provider Spotify said on Monday that the company is cutting its global workforce by nearly one-fifth in its latest layoffs round, reported Xinhua.
In a memo to staff, CEO Daniel Ek noted that the cuts would impact 17 per cent of the company's over 9,000 employees.
"I recognise this will impact a number of individuals who have made valuable contributions," Ek wrote. "To be blunt, many smart, talented and hard-working people will be departing us."
This move represents the third and most extensive round of layoffs this year at the Stockholm-based company, which has offices across the United States, including in the San Francisco Bay Area.
According to the company's third-quarter report, the streaming service significantly grew its subscriber base to 574 million users, and achieved an 11 per cent increase in total revenue of US$3.6 billion.
The company reported a quarterly profit of US$34 million, its best result since the pandemic. But Ek said the company was struggling with a loss of over US$500 million in revenue since 2023.
"We debated making smaller reductions throughout 2024 and 2025," Ek said. "Yet, considering the gap between our financial goal state and our current operational costs, I decided that a substantial action to rightsize our costs was the best option to accomplish our objectives." –BERNAMA