Spotify employees have received some sad news as the company is forced to cut its staff by almost 17% due to negative economic difficulties.
The head of Spotify, Daniel Eck, made a statement about this, explaining that the main reason for this decision was the significant increase in the cost of capital.
“Economic growth has slowed significantly and the cost of capital has also increased. This reality also affected our company," Ek said.
The company's management considered the possibility of fewer layoffs in 2024-2025, but was forced to abandon this plan due to serious discrepancies between operating expenses and financial targets.
Spotify employs more than 9,000 people worldwide, and laying off 1,500 people has become an unpleasant necessity amid a prolonged economic downturn that could continue into the future.
