‘We need to change how we work’: Spotify announces staff cuts

Spotify is the latest to be hit with staff cuts across its global business.

In a note shared to staff and published online, CEO Daniel Ek confirmed that 17% of the organisation’s total headcount were being let go.

“Economic growth has slowed dramatically and capital has become more expensive. Spotify is not an exception to these realities,” Ek’s note read.

It continued: “I recognize this will impact a number of individuals who have made valuable contributions. To be blunt, many smart, talented and hard-working people will be departing us.”

The cuts are believed to have also impacted Spotify’s Australian offices, however when contacted by Mumbrella, the local PR team had nothing to add beyond Ek’s statement to staff.

Other local companies to be rocked by redundancies in recent weeks alone include Private Media and M&C Saatchi.

“The decision to reduce our team size is a hard but crucial step towards forging a stronger, more efficient Spotify for the future,” Ek’s statement continues.

“But it also highlights that we need to change how we work. In Spotify’s early days, our success was hard won. We had limited resources and had to make the most of every asset. Our ingenuity and creativity were what set us apart. As we’ve grown, we’ve moved too far away from this core principle of resourcefulness.

“The Spotify of tomorrow must be defined by being relentlessly resourceful in the ways we operate, innovate, and tackle problems. This kind of resourcefulness transcends the basic definition – it’s about preparing for our next phase, where being lean is not just an option but a necessity.”

The news comes just days after Spotify launched its hugely popular Spotify Wrapped feature for 2023. Meanwhile, in a recent interview with Mumbrella, Spotify podcast account director for JAPAC, Sam Moles, confirmed that platform exclusivity will no longer be a priority for the business.

“It’s a more holistic approach to publishing content. That exclusivity strategy is not something we’re necessarily pursuing anymore,” Moles said.

“It’s about trying to find great content that resonates with listeners whether they want to listen to it on Spotify or other podcast platforms.”

It is also yet to be seen what the outcome will be for Spotify’s soon-to-expire deal with its biggest star, Joe Rogan. Rogan’s three-year deal with the audio streaming platform, worth a reported US$200 million (A$301 million) is set to conclude next month, leaving many to speculate as to whether the partnership will live beyond 2023.


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