LONDON: Music streaming giant Spotify is to cut almost a fifth of jobs at the business in a move affecting about 1,600 posts, reported German news agency (dpa).
Bosses at the technology firm said in a note to staff that it will axe 17 per cent of the workforce in a bid to be more efficient in the face of a growth slowdown.
The company employs around 9,300 people globally.
Daniel Ek, chief executive of Spotify, said: “Considering the gap between our financial goal state and our current operational costs, I decided that a substantial action to right-size our costs is 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.”
He said the business will “build an even stronger Spotify” in 2024 as a result of the cuts.
It is the latest set of job losses at Spotify this year, with the company first announcing it would cut around 600 roles in January.
In the summer, the Sweden-based business said it would cut around 200 jobs in its podcasting unit as it continued to reduce costs.
The company also increased its subscription fees in the UK, the US and Australia in July, as it said it would pass cost increases on to customers. -Bernama
