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Spotify CEO Daniel Ek disclosed in an all-staff memo that the company will cut six per cent of its workforce globally, The Verge reported.
The CEO announced layoffs as part of an organisational restructuring aimed at increasing efficiency and cost reduction. “As part of this effort, and to bring our costs more in line, we have made the difficult but necessary decision to reduce our number of employees,” he wrote.
Also read: Netflix iOS app gets an overhaul
The CEO hoped the company can sustain the strong tailwinds from the pandemic. “In hindsight, I was too ambitious in investing ahead of our revenue growth. I take full accountability for the moves that got us here today,” he wrote.
As per the company’s last earnings report, it had over 9,800 full-time employees, so a little under 600 staff will be laid off. Reports say affected employees will be intimated over the next few hours and receive an average of five months’ severance, including healthcare costs.
The Verge also reported that Spotify’s head of content Dawn Ostroff is leaving the company.
Also read: Spotify launches ‘New Year’s Hub’ with curated playlists
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