The Swedish music-streaming platform said it needed to improve efficiency.
Despite being the most popular music streaming site and being a recognisable brand around the world, Spotify has never posted a full-year net profit.
Spotify’s job loss announcement follows similar news last week from both Microsoft and Alphabet. Alphabet, which owns Google, will be cutting 12,000 jobs, while Microsoft announced as many as 11,000 employees would be losing their jobs.
Spotify hosts The Joe Rogan Experience podcast
Since November, Meta and Amazon have both also announced job cuts. Meta said it would cut 13% of its workforce, a total of 11,000 employees, while Amazon revealed plans to cut over 18,000 jobs due to the “uncertain economy”.
Technology companies are facing a downturn after two years in a pandemic, in which they hired aggressively.
Spotify’s current workforce is about 9,800, with 6 per cent expected to be cut. The company expects to face at least €35m (£30m) in severance-related fees.
“In hindsight, I was too ambitious in investing ahead of our revenue growth,” boss Daniel Ek wrote on the company’s blog.
“I take full accountability for the moves that got us here today.”
Spotify also revealed that David Ostroff, its chief content and advertising business officer, would leave his role as part of the broader reorganisation.
Spotify has invested heavily since its launch, fueling growth and expansion, particularly into the podcast market.
In October last year, it announced it would slow down hiring into the new year.
