Spotify To Fire 17% Of Its Workforce
All Image Credit: Spotify
Spotify has been in the news a lot recently. Here’s a quick rundown of what has been happening:
- Earlier in 2023 Spotify had two rounds of job cuts that amounted to a reduced headcount of approximately 700.
- On December 4th it was announced that the music streaming service is laying off 17% of its global workforce which amounts to over 1,500 positions.
- Just before the staffing reduction announcement it was announced that Jenny Hermanson, Spotify’s MD for the Nordic region, was leaving the company after 14 years at the Spotify.
- Last Thursday, Spotify’s MD for the UK and Ireland, Tom Connaughton, also announced his exit.
- Now Paul Vogel, the Spotify’s Chief Executive Officer, is leaving and according to an SEC filing from December 5th, just 24 hours after Spotify’s layoff announcement, Vogel cashed out almost 48,000 Spotify shares – banking him close to $9.4 million (US).
That’s a lot of changes in a very short time. Clearly things aren’t rosy over at Spotify. According to Spotify’s CEO Daniel Ek;
“Over the last two years, we’ve put significant emphasis on building Spotify into a truly great and sustainable business – one designed to achieve our goal of being the world’s leading audio company and one that will consistently drive profitability and growth into the future. While we’ve made worthy strides, as I’ve shared many times, we still have work to do. Economic growth has slowed dramatically and capital has become more expensive. Spotify is not an exception to these realities.”
Ek goes on to say;
“This brings me to a decision that will mean a significant step change for our company to align Spotify with our future goals and ensure we are right-sized for the challenges ahead,”
“I have made the difficult decision to reduce our total headcount by approximately 17% across the company. I recognize this will impact a number of individuals who have made valuable contributions. To be blunt, many smart, talented and hard-working people will be departing us”
“Today is a difficult but important day for the company. To be very clear, my commitment to our mission and belief in our ability to achieve it has never been stronger. I hope you will join me on Wednesday for Unplugged to discuss how we move forward together. A reduction of this size will make it necessary to change the way we work, and we will share much more about what this will mean in the days and weeks ahead. Just as 2023 marked a new chapter for us, so will 2024 as we build an even stronger Spotify.”
For more information read the full Spotify News Release here.
Read more at MusicBuisness Worldwide.
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