STOCKHOLM, Dec 4: Music streaming giant Spotify said Monday it would reduce the number of its employees by around 17 percent in a bid to cut costs amid "dramatically" slower economic growth.
The announcement comes on the heels of a rare quarterly net profit of 65 million euros in October, compared to a loss of 166 million for the same period a year earlier, following 26 percent growth in active users for the third quarter to 574 million.
Around 1,500 people will leave the company, Spotify said.
It was the latest in a series of layoffs announced in the tech industry cutting tens of thousands of jobs following a boom during Covid pandemic lockdowns.
"I realise that for many, a reduction of this size will feel surprisingly large given the recent positive earnings report and our performance," chief executive Daniel Ek wrote in a letter to employees, which was seen by AFP.
He said that in 2020 and 2021, the Swedish company "took advantage of the opportunity presented by lower-cost capital and invested significantly in team expansion, content enhancement, marketing and new verticals." —AFP
