Spotify, music streaming announced cutting 600 jobs which is up to 6% of the global workforce. The approximately 10,000-person corporation with headquarters in Stockholm is to restructure its management as part of the makeover in an effort to close the gap between its operational expenses and income.
“In hindsight, I was too ambitious in investing ahead of our revenue growth.” CEO and Co-founder, Daniel Ek, said on Spotify’s official blog. “I take full accountability for the moves that got us here today.”
“Like many other leaders, I hoped to sustain the strong tailwinds from the pandemic and believed that our broad global business and lower risk to the impact of a slowdown in ads would insulate us,” Ek said in a note sent to its employees.
Compared to companies internal memos notifying layoffs, Ek’s letter is quite lengthy. In addition to making this painful revelation, he claims that Spotify is ineffective at ensuring the long-term survival of the business.
