Earlier today, CEO Daniel Ek shared the following note about the company's organizational changes with all Spotify employees.
Team,
Over the last two years, we've put significant emphasis on building Spotify into a truly great and sustainable business - one designed to achieve our goal of being the world's leading audio company and one that will consistently drive profitability and growth into the future. While we've made worthy strides, as I've shared many times, we still have work to do. Economic growth has slowed dramatically and capital has become more expensive. Spotify is not an exception to these realities.
This brings me to a decision that will mean a significant step change for our company. To align Spotify with our future goals and ensure we are right-sized for the challenges ahead, I have made the difficult decision to reduce our total headcount by approximately 17% across the company. I recognize this will impact a number of individuals who have made valuable contributions. To be blunt, many smart, talented and hard-working people will be departing us.
For those leaving, we're a better company because of your dedication and hard work. Thank you for sharing your talents with us. I hope you know that your contributions have impacted more than half a billion people and millions of artists, creators, and authors around the world in profound ways.
I realize that for many, a reduction of this size will feel surprisingly large given the recent positive earnings report and our performance. We debated making smaller reductions throughout 2024 and 2025. Yet, considering the gap between our financial goal state and our current operational costs, I decided that a substantial action to rightsize 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.
To understand this decision, I think it is important to assess Spotify with a clear, objective lens. In 2020 and 2021, we took advantage of the opportunity presented by lower-cost capital and invested significantly in team expansion, content enhancement, marketing, and new verticals. These investments generally worked, contributing to Spotify's increased output and the platform's robust growth this past year. However, we now find ourselves in a very different environment. And despite our efforts to reduce costs this past year, our cost structure for where we need to be is still too big.
When we look back on 2022 and 2023, it has truly been impressive what we have accomplished. But, at the same time, the reality is much of this output was linked to having more resources. By most metrics, we were more productive but less efficient. We need to be both. While we have done some work to mitigate this challenge and become more efficient in 2023, we still have a ways to go before we are both productive and efficient. Today, we still have too many people dedicated to supporting work and even doing work around the work rather than contributing to opportunities with real impact. More people need to be focused on delivering for our key stakeholders creators and consumers. In two words, we have to become relentlessly resourceful.
I know you will all be anxious to hear the next steps about how this process will work. If you are an impacted employee, you will receive a calendar invite within the next two hours from HR for a one-on-one conversation. These meetings will take place before the end of the day on Tuesday, and while Katarina will provide more detail on all of the specifics, please know the following will apply to all of these bandmates:
Severance pay: We will start with a baseline for all employees, with the average employee receiving approximately five months of severance. This will be calculated based on local notice period requirements and employee tenure.
PTO: All accrued and unused vacation will be paid out to any departing employee.
Healthcare: We will continue to cover healthcare for employees during their severance period.
Immigration support: For employees whose immigration status is connected with their employment, HRBPs are working with each impacted individual in concert with our mobility team.
Career Support: All employees will be eligible for outplacement services for two months.
For the team that will remain at Spotify, I know this decision will be difficult for many. Please know we are focused on treating our impacted colleagues with the respect and compassion they deserve.
Looking Ahead The decision to reduce our team size is a hard but crucial step towards forging a stronger, more efficient Spotify for the future. But it also highlights that we need to change how we work. In Spotify's early days, our success was hard won. We had limited resources and had to make the most of every asset. Our ingenuity and creativity were what set us apart. As we've grown, we've moved too far away from this core principle of resourcefulness.
The Spotify of tomorrow must be defined by being relentlessly resourceful in the ways we operate, innovate, and tackle problems. This kind of resourcefulness transcends the basic definition - it's about preparing for our next phase, where being lean is not just an option but a necessity.
Embracing this leaner structure will also allow us 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. 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,
Europe Stories
04/09/2025
Monumental Sports & Entertainment (MSE), in collaboration with Dalet, has been a...
08/05/2025
As expected, continued weak demand from key sales markets and declining economic...
08/05/2025
A new three-part series is coming to BBC iPlayer and BBC One
(Image: The Christie Archive Trust)
The BBC has announced Agatha Christie's Endless Night, a...
08/05/2025
08 May 2025
VEON Shareholders Re-elect Board at 2025 AGM, Founder Augie Fabela ...
08/05/2025
Comedy and entertainment channel U&Dave bring back their #1 ranked programme of ...
08/05/2025
Expect even more chaos this July with Harriet Webb leading the returning cast, p...
08/05/2025
TenneT relies on Arvato Systems for market communication
Energy industry: Impressive market communication know-how and system integration expertise
G tersloh...
08/05/2025
When Taiki Hamamoto, 22, came across a Hanafuda deck at his local game shop, he was intrigued. He had grown up playing the traditional Japanese card game with f...
08/05/2025
The Liveline is now open , said Joe Duffy earlier today, as he previewed this af...
08/05/2025
RT , in association with the BBC, Screen Ireland and Cineflix Rights has reveale...
07/05/2025
Discovering music should feel effortless and fun. That's why Spotify continu...
07/05/2025
FOX Doubles Down on the Laughs Renewing Comedies Animal Control, Starring Joel M...
07/05/2025
07 May 2025
VEON's QazCode Signs MoU with Seekr to Develop AI-Powered Solut...
07/05/2025
UKTV has ordered a feature length documentary celebrating the life of Britain...
07/05/2025
Wednesday 7 May 2025
Shaun the Sheep fans are in for a baaaarilliant treat in 2...
07/05/2025
Rohde & Schwarz to highlight innovative broadcast technologies at CABSAT 2025 Rohde & Schwarz will showcase its latest energy-efficient transmitters and 5G Br...
07/05/2025
The Importance of Workflow Efficiencies in Post-Production Wednesday, 14 May
14:40
FilmLight sits down with Sam Lempp, head of business development for Nara, ...
07/05/2025
RT News is pleased to announce the appointment of RT journalist, Fergal O'Brien, as its new Business Correspondent.
In his new role, Fergal will be repor...
06/05/2025
In Colombia, music isn't just background noise-it's center stage. It'...
06/05/2025
En Colombia, la m sica no suena de fondo: es el centro del escenario. Es el cora...
06/05/2025
At Spotify, we always seek ways to connect users with their next favorite podcas...
06/05/2025
Since Spotify's 2019 launch in India, the growth of the country's local ...
06/05/2025
eds3_5_jq(document).ready(function($) { $(#eds_sliderM519).chameleonSlider_2_1({...
06/05/2025
Comscore Reports First Quarter 2025 ResultsRESTON, Va., May 6, 2025 Comscore, Inc. (Nasdaq: SCOR), a trusted partner for planning, transacting and evaluating ...
06/05/2025
Live from Studio 1 at 7pm, Tuesday May 6
Iconic trad-fusion group K LA will be ...
06/05/2025
Rohde & Schwarz hosts RF Testing Innovations Forum 2025, helping design engineer...
06/05/2025
LONDON, UK, May 6, 2025 /PRNewswire/ -- Today at the company s annual THINK event, IBM (NYSE: IBM) is unveiling new hybrid technologies that break down the long...
06/05/2025
Apple today introduced Tap to Pay on iPhone in Bulgaria, Finland, Hungary, Liechtenstein, Poland, Portugal, Slovakia, Slovenia, and Switzerland, enabling millio...
06/05/2025
Ahead of Pride Month, Apple is introducing a new Apple Watch Pride Edition Sport Band, watch face, and iPhone and iPad wallpaper to celebrate the strength and b...
06/05/2025
First episode airs this Friday at 8pm on RT One and RT Player with Doireann N Ghlac in presenting
Guests include Barry Murphy, Brooke Scullion, Bryan Dobso...
05/05/2025
As Europe gears up for the Eurovision Song Contest 2025, Spotify is celebrating the spirit of unity and musical legacy with a new series of Spotify Singles. Fiv...
05/05/2025
As part of the restructuring of its loss-making Carbon Fibers business unit, SGL Carbon has decided to close its production site in Lavradio (Portugal). Lavradi...
05/05/2025
Comscore Launches Certified Deal IDs in Magnite's SSP, Bringing Trusted Cont...
02/05/2025
Updated May 2: In a victory for consumers, artists, creators, and authors, Apple...
02/05/2025
Since 2022, Spotify and FC Barcelona have brought the worlds of music and footba...
02/05/2025
With more than 678 million users worldwide tuned in to Spotify, we're at the heart of music and culture. Our unrivaled global community of artists, songwrit...
02/05/2025
Data Communications Company has announced its partnership with IBM to modernise ...
02/05/2025
Comscore at the 20th Annual Needham Technology, Media, & Consumer Conference RESTON, Va., May 2 2025: Comscore (Nasdaq: SCOR), a trusted partner for planning, t...
02/05/2025
02 May 2025
VEON to release 1Q25 trading update on May 15, 2025 Dubai, May 2, 2025 - VEON Ltd. (NASDAQ: VEON), a global digital operator, today confirms that t...
02/05/2025
CUPERTINO, CALIFORNIA Apple today announced financial results for its fiscal 2025 second quarter ended March 29, 2025. The Company posted quarterly revenue of $...
02/05/2025
Well-known faces pushed to their limits in Uncharted with Ray Goggins...
01/05/2025
As Tanzania approaches a pivotal election year marked by both promise and concern over the impact of artificial intelligence (AI) on media, more than 300 journa...
01/05/2025
After four years of lectures, study sessions, exams, and parties, college senior...
01/05/2025
Prochazka knows the power of relationships, so it has always been important to him that ATEC Pro be renowned for more than just supplying great equipment. Becom...
01/05/2025
Munster and Connacht Football Finals onThe Sunday Game Live
Final two days of t...
01/05/2025
Voice actor and producer Mark Yoshimoto Nemcoff shares his first impressions of the DPA 2017 Shotgun Microphone, from real-world auditions to side-by-side compa...
01/05/2025
With my previous console, Freeman recalls, I always had to run a Waves server for EQ and compression, but when I switched to DiGiCo, I found it was such an op...
01/05/2025
Stream all episodes ofLook Who's Hangry from April 29
An RT Player Original in partnership with Heinz...
01/05/2025
Here is your host, Patrick Kielty!
T naiste, Minister for Foreign Affairs and T...
Earlier today, CEO Daniel Ek shared the following note about the company's organizational changes with all Spotify employees.
