(WatchDogReport.org) – Spotify is in hot water again as they’ve announced another big round of job cuts. They’re dropping a whopping 17 percent of their workforce – that’s over 1,500 employees down the drain. This isn’t their first rodeo; it’s their third time kicking people out the door this year alone.
Daniel Ek, the big boss at Spotify, spilled the beans in a memo to the company, saying the company’s been focusing too much on spending instead of being smart about its resources. He emphasized that the business currently has excessive personnel focused on support tasks or performing additional tasks unrelated to contributing to impactful opportunities. The CEO defended the chop job, saying it’s all about buckling down on what truly matters.
This year hasn’t been smooth sailing for Spotify. They axed about 600 employees in January and said sayonara to some podcast staff in June. The music-streaming giant went on a massive hiring spree during the chaos of the recent global health crisis, but now they’re trying to tighten their belts. It’s a bummer for all the folks who helped build the company up. Ek said they’ll get around five months of cash and their health cover during that time.
Spotify’s money situation isn’t looking too rosy despite adding 6 million more subscribers than expected between June and September. They barely managed to scrape up a profit of around $34.8 million during that time. Talk about a tight squeeze!
Despite experiencing significant growth, Spotify has encountered decreased efficiency and a departure from the resourceful approach that characterized its inception as a tech startup, as stated by Ek.
Daniel Ek isn’t messing around when he says this isn’t a step back – it’s a strategic shake-up. But it seems the layoffs are just the beginning of Spotify’s plans to change the way they work.
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