Mass redundancies | Spotify axes 1500 jobs in third wave of cuts this year

Music streaming giant Spotify is laying off around 1,500 employees, or 17% of its workforce, to bring down costs, the company has announced.

As reported by Reuters, it is the third wave of job cuts at the company this year, after letting 600 of its staff go in January, and 200 more in June.

In a letter to employees, Spotify CEO Daniel Ek said the company hired more in 2020 and 2021 due to the lower cost of capital and while its output has increased, much of it was linked to having more resources.

Spotify will incur about 130-145 million Euros (£111-124million) in charges in the fourth quarter due to the layoffs, the company said, adding that majority of the cash component of the charges will be recorded in the first and second fiscal quarters of 2024.