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Spotify is cutting 17% of its workforce, or 1,500 jobs< /p>Open full screen

About 2,300 people have lost their jobs at Spotify since the start of the year.

Associated Press

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Spotify announced Monday that it is cutting 17% of its global workforce. This is the third round of layoffs this year for the on-demand music service, which is working to cut costs while focusing on profitability.

In a message to staff published Monday on the company blog, President and CEO Daniel Ek said the jobs were being eliminated as part of a strategic reorientation . The post did not specify how many people would lose their jobs, but a spokesperson confirmed it was about 1,500 positions.

Spotify used cheap financing to grow its business and invested significantly in staff, content and marketing in 2020 and 2021, the blog says.

However, Ek said the company was surprised when central banks started raising interest rates last year, which can slow economic growth. Both are a challenge, he says.

We now find ourselves in a very different environment. And despite our efforts to reduce costs last year, our cost structure relative to where we should be is still too high, he said.

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Mr. Ek said the company's leaner structure would ensure Spotify's continued profitability.

The Stockholm-based company recorded a net loss of 462 million euros (nearly 680 million Canadian dollars) for the nine months ended September.

L&#x27 The company announced in January that it was cutting 6% of its total workforce, or about 600 positions. In June, it cut its workforce by another 2%, or about 200 people, primarily in its podcasting division.

Tech companies like Amazon, Google, Microsoft, Meta and IBM have announced the loss of hundreds of thousands of jobs this year.

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