Spotify has announced that it will be laying off about 1,500 workers, or about 17% of its worldwide workforce. As part of his efforts to reduce expenses and streamline operations, CEO Daniel Ek has announced layoffs. It should be noted that the company’s recent financial performance has improved.Ek informed employees in an internal memo that the reorganisation was essential for the company to become “more efficient” and in line with its long-term goals. According to media reports, this is one of the biggest layoffs at Spotify ever, and it falls squarely within the broader wave of cutbacks in the tech sector.Reasons for the Spotify’s LayoffsEk mentioned aggressive hiring in 2020 and 2021 as a result of the rapid expansion across product, content, and support operations that was supported by abundant cash and low loan rates. As a result of too many responsibilities being disconnected from critical areas of influence, an internal investigation later discovered that some aspects of the company had grown too complex.The statement follows the Swedish streaming company’s strong third-quarter results, which were announced a few weeks ago. The company’s operational profit margin improved, while revenue increased 11% year-on-year to €3.4 billion, which was higher than market estimates.… Read MoreStartupTalky- Business News, Insights and Stories
