#Spotify To Cut 1,500 Jobs In Third Layoff Round This Year, Shares Jump

(Reuters 4 Dec 2023) – Music streaming giant Spotify (SPOT.N) said on Monday that it will lay off around 1,500 employees, or 17% of its workforce, to bring down costs, after letting 600 of its staff go in January, and 200 more in June. Its shares soared about 11% to trade near their two-year high of $ in early trading. After a round of job cuts at the start of the year by tech companies, some have begun reducing their workforce again, with announcements coming from Amazon to Microsoft-owned LinkedIn. In a letter to employees, Spotify CEO Daniel Ek said the company hired more in 2020 and 2021 due to the lower cost of capital and while its output has increased, much of it was linked to having more resources. Spotify will incur about 130 million euros to 145 million euros in charges in the fourth quarter due to the layoffs, the company said, adding that majority of the cash component of the charges will be recorded in the first and second fiscal quarters of 2024.