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STOCKHOLM: Music streaming large Spotify mentioned Monday it will scale back the variety of its staff by round 17% in a bid to cut prices amid “dramatically” slower financial development.
Spotify in October posted a uncommon quarterly working revenue of 32 million euros, in comparison with a lack of 228 million for a similar interval a 12 months earlier, on the again of 26% development in lively customers for the third quarter.
“I realise that for many, a reduction of this size will feel surprisingly large given the recent positive earnings report and our performance,” chief govt Daniel Ek wrote in a letter to staff, which was seen by AFP.
He mentioned that in 2020 and 2021, the corporate “took advantage of the opportunity presented by lower-cost capital and invested significantly in team expansion, content enhancement, marketing and new verticals.”
“However, we now find ourselves in a very different environment. And despite our efforts to reduce costs this past year, our cost structure for where we need to be is still too big.”
Spotify has invested closely since its launch to gas development with expansions into new markets and, in later years, unique content material corresponding to podcasts.
It has invested over one billion {dollars} into podcasts alone.
In 2017, the corporate had round 3,000 staff members, greater than tripling the determine to round 9,800 on the finish of 2022.
The firm has by no means posted a full-12 months web revenue and solely often quarterly income regardless of its success within the on-line music market.
Spotify in October posted a uncommon quarterly working revenue of 32 million euros, in comparison with a lack of 228 million for a similar interval a 12 months earlier, on the again of 26% development in lively customers for the third quarter.
“I realise that for many, a reduction of this size will feel surprisingly large given the recent positive earnings report and our performance,” chief govt Daniel Ek wrote in a letter to staff, which was seen by AFP.
He mentioned that in 2020 and 2021, the corporate “took advantage of the opportunity presented by lower-cost capital and invested significantly in team expansion, content enhancement, marketing and new verticals.”
“However, we now find ourselves in a very different environment. And despite our efforts to reduce costs this past year, our cost structure for where we need to be is still too big.”
Spotify has invested closely since its launch to gas development with expansions into new markets and, in later years, unique content material corresponding to podcasts.
It has invested over one billion {dollars} into podcasts alone.
In 2017, the corporate had round 3,000 staff members, greater than tripling the determine to round 9,800 on the finish of 2022.
The firm has by no means posted a full-12 months web revenue and solely often quarterly income regardless of its success within the on-line music market.
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