Spotify Layoffs: 1500 people will be laid off from Spotify; The CEO of the company announced, gave this reason

Music streaming platform Spotify has announced a 17 percent reduction in its workforce. It is believed that about 1500 people will be affected by this decision of the company. Company CEO Daniel Ek said the layoffs are related to Spotify’s plan to “right size” and achieve its future goals. The company’s CEO said economic growth has slowed dramatically and capital has become more expensive.

The CEO said, “To align Spotify with our future goals and ensure that we are prepared to meet the challenges ahead, I have made the difficult decision to reduce the company’s workforce by 17%. He said that “I am sure the decision will impact many people who have made valuable contributions. Frankly, many smart, talented and hard-working people will leave us.”

Spotify’s 17 percent workforce cut means around 1,500 employees will be out. Earlier, Spotify had laid off 600 employees in January, followed by 200 employees in June. In a letter to employees, Daniel Ek said they would receive a calendar invitation from HR within two hours for a face-to-face conversation. These meetings will take place before the end of the day on Tuesday.

Spotify will pay five months of severance to laid-off employees based on local notice period requirements. Apart from this, unused leave will also be paid to the employees. Spotify will continue to cover the health care of the employees for the severance period i.e. five months. All laid off employees will be eligible for outplacement services for two months.