LONDON (AP) — Spotify says it's axing 17% of its global workforce, the music streaming service's third round of layoffs this year as it moves to slash costs while focusing on becoming profitable.
Spotify had used cheap financing to expand the business and “invested significantly” in employees, content and marketing in 2020 and 2021, the blog post said.
But Ek indicated that the company was caught out as central banks started hiking interest rates last year, which can slow economic growth.
In June, it cut staff by another 2%, or about 200 workers, mainly in its podcast division.
Tech companies like Amazon, Google, Microsoft, Meta and IBM have announced hundreds of thousands of job cuts this year.
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