Spotify announces 1,600 jobs to be cut as Daniel Ek blogs about efficiency in the face of slow growth

Spotify, the world’s leading digital music platform, has announced that it will be making 1,600 job cuts to streamline the business in the face of slow growth. The move, announced by Spotify CEO Daniel Ek in a blog post, will see a fifth of Spotify’s workforce leave the company, with an established 150 jobs in the UK at risk.

Writing about the move, Ek explained: “Considering the gap between our financial goal state and our current operational costs, I decided that a substantial action to right-size our costs was the best option to accomplish our objectives. While I am convinced this is the right action for our company, I also understand it will be incredibly painful for our team.

“To be blunt, many smart, talented and hard-working people will be departing us,” but Ek assured readers that the business will “build an even stronger Spotify” in 2024 as a result of the cuts. 

It’s the latest round of job cuts by Spotify to the 600 roles it cut earlier this year. This time, the music streaming company is letting go of employees in its podcasting unit. In addition to job cuts, Spotify has also raised subscription fees in the UK, US, and Australia, citing cost increases as the reason for the price hike.

The company employs around 9,300 people globally. It did not disclose how many roles would be affected in the UK but employs 881 people in the country, according to its latest annual report