Music streaming giant Spotify is reportedly laying off around 1,500 workers (17% of its workforce), in an effort to reduce costs amid an economic slowdown.
The layoffs will affect employees across all departments, including engineering, marketing, and sales.
The company said in a statement that the decision was “difficult but necessary” to ensure its long-term sustainability. Spotify has been facing a number of challenges in recent months, including rising inflation, a slowdown in advertising spending, and increased competition from other music streaming services.
“We are committed to managing our costs responsibly while continuing to invest in our product and our people,” Spotify said. “We believe that these changes will put us in a stronger position to weather the current economic climate and continue to grow in the long term.”
The layoffs are the latest in a series of cost-cutting measures by Spotify. In January, the company cut 600 jobs, and in June, it laid off another 200 employees.
The company has also slowed down hiring, and has started renegotiating some of its deals with record labels.
Despite the challenges, Spotify boasts 422 million monthly active users and is also investing heavily in podcasting, which is seen as a key growth area.
It’s a waiting game to see if Spotify’s cost-cutting measures can offset the challenges it faces.