Marking its third round of layoffs this year.
And now for some layoff news not directly impacting, but adjacent to, the video games industry: Spotify has today laid off an additional 1,500 employees in its third round of layoffs this year.
“I realize that for many, a reduction of this size will feel surprisingly large given the recent positive earnings report and our performance,” Spotify’s Daniel Ek wrote in a press release that was published before those impacted were notified they’d lost their jobs.
“We debated making smaller reductions throughout 2024 and 2025,” Ek continued. “Yet, considering the gap between our financial goal state and our current operational costs, I decided that a substantial action to right-size our costs was the best option to accomplish our objectives. While I am convinced this is the right action for our company, I also understand it will be incredibly painful for our team.”
Employees were notified they’d be let go later that same day. This round follows one that reduced Spotify by 6% in early 2023, and another 2% in May 2023. The streaming service has around 9,000 remaining employees, according to Engagdet.
Those laid off in this third round of cuts will get an average of five months’ severance pay, according to Ek, alongside healthcare cover and support for immigration or employment matters.
Ek continued to say that the cuts have resulted in a “leaner structure” which will allow Spotify “to invest our profits more strategically back into the business”.
“With a more targeted approach, every investment and initiative becomes more impactful, offering greater opportunities for success,” Ek said. “This is not a step back; it’s a strategic reorientation. We’re still committed to investing and making bold bets, but now, with a more focused approach, ensuring Spotify’s continued profitability and ability to innovate. Lean doesn’t mean small ambitions; it means smarter, more impactful paths to achieve them.”
Layoffs are currently cutting through the games industry too; of late, we’ve reported at cuts at organisations including Embracer, 505 Games’ Digital Bros, Amazon, Bungie, Media Molecule, Ubisoft and many more.
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