Spotify announces 1,500 layoffs due to "rising costs" after posting first quarterly profit

According to Reuters, Spotify said in an email today that due to "increased costs", the company will lay off 1,500 employees, accounting for 17% of the total number of employees. The company It laid off 600 employees in January this year and another 200 in June.

▲ Picture source Reuters

This site has previously reported that Spotify announced its third quarter 2023 results in October this year It shows that the company’s operating income is 32 million euros (note on this site: currently about 249 million yuan). This is the first time Spotify has achieved quarterly profits since 2021, thanks to higher gross profit margins and lower Marketing and personnel costs.

#But Spotify CEO Daniel Ek claimed at the time that the company was still focusing on efficiency to "get more from every dollar."

Daniel Ek said today that In light of recent positive earnings reports and performance, and considering that the company’s employee costs are rising, Spotify plans to make more layoffs to further improve profitability:

We discussed making fewer layoffs in 2024 and 2025, however, given the disparity between our financial target state and our current operating costs, I ultimately decided to take 'Substantial actions' to optimize our costs to achieve our goals.

Related reading:

"Spotify's revenue in the third quarter was 32 million euros, achieving quarterly profit for the first time since 2021"

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