Spotify is a Sweden based media service provider. It has millions of users in India also. From music to podcasts can be listened to on Spotify app. The company also offers subscription, through which users are given many exclusive features in the app.
Report According to, the company has cited challenges as the reason for the recent layoffs. CEO Daniel Aik said in a letter sent to employees that the company is going through many challenges and it is important to retain the right people. The CEO talked about reducing the company’s expenses. He said that 17 percent of the total workforce is being removed, which will affect approximately 1500 people.
However, Spotify has said that people who have lost their jobs will be helped. Such employees will be paid an average payment of 5 months. The amount that will be given as assistance has not been decided yet. The amount of assistance will be decided according to the work and notice period of the employees. The company has also assured that it will help in the medical expenses of the job seekers.
Talking about user base, Spotify has more than 57 crore monthly active users. Its userbase is continuously increasing. Despite this increase, the company’s profit has not increased. His profits are very rare. This is also being considered as a reason for reduction in the number of employees.