spotify ceo reveals why 1,500 employees were laid off; the big reason
Spotify, a Swedish audio streaming and media services provider company, is in the limelight in recent days. From Spotify’s 1,500 layoffs and CFO exit to recent deals, the company gained all the attention.
Music streaming giant Spotify reduced the number of its employees by around 17 per cent in a bid to cut costs. Around 1,500 people were laid off, shocking the world. Later on, Spotify’s Chief Financial Officer (CFO) also left the company. The recent layoff was the third round of job cuts for Spotify in 2023.
Daniel Ek, the co-founder and CEO of music streaming service Spotify, has explained the reason behind layoff of 1,500 employees.
Spotify CEO reveals why 1,500 employees were laid off
Daniel Ek sent a memo to the rest of the employees, explaining the reason behind the recent layoffs. In the memo, he said, “By most metrics, we were more productive but less efficient. We need to be both.”
One of the big reasons behind layoff was not having enough sufficiency. He said that the laid off employees weren’t adding substance to the company.
He noted in the memo, “We have to become relentlessly resourceful.” On Spotify’s CFO Paul Vogel departure, he explained that Spotify was looking at a CFO with a different mix of experiences.
In recent months, big tech companies like Google, Amazon, Microsoft, Yahoo, Meta and Zoom laid off thousands of employees. Layoffs affected 7,331 employees in the tech industry in October. Layoffs also took place in November. Chewy, an American online retailer of pet food, laid off over 200 employees on 14 November. Amazon layoff also affected 180 employees in the gaming division on 14 November.
Google, an American multinational technology company, laid off employees from consumer support staff and Google Users & Products department. Beyond Meat, a Los Angeles–based producer of plant-based meat substitutes, fired around 19% of employees.