Spotify said on Monday that it would cut nearly a fifth of its work force, at least the third round of layoffs this year, as it has struggled to become consistently profitable after spending aggressively to expand beyond music streaming into areas such as podcasting.
“Economic growth has slowed dramatically and capital has become more expensive,” Mr. Ek said.
“Despite our efforts to reduce costs this past year, our cost structure for where we need to be is still too big,” Mr. Ek added.
Despite being the largest music streaming platform, Spotify has long struggled to be profitable because of the terms of licensing deals it has with record labels and music publishers.
It struck expensive deals with well-known figures such as former President Barack Obama and first lady Michelle Obama, as well as Prince Harry and wife, Meghan.
Persons:
Daniel Ek, Mr, Ek, Barack Obama, Michelle Obama, Prince Harry, Meghan
Organizations:
Spotify