Spotify cuts about 6% of staff

Spotify’s cutting about 6% of its workforce, CEO Daniel Ek announced on January 23, alongside a leadership reshuffle.

Ek said operating-expense growth in 2022 was twice revenue growth. He acknowledged investing too aggressively and said earlier cost controls hadn’t been enough.

Affected employees will receive roughly five months’ severance on average, depending on tenure and local requirements, plus healthcare coverage during severance and unused vacation pay, Spotify said.

The chief product and business officers become co-presidents, overseeing most product and engineering work and the business teams respectively. Dawn Ostroff is leaving, with a transitional advisory role; content, advertising and licensing pass to the chief business officer.

London headquarters photograph published in Spotify’s February 2020 office tour. Photo: Spotify, London Headquarters press kit. Native crops and resizes.