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Spotify had previously laid off 600 workers in January, and an additional 200 in June. Now, for the third time, Spotify has announced that they will cut 17% of their workforce, which will affect 1500 employees at the company.
Spotify stated that this step is to continue to optimize the operating costs of the streaming service. Spotify's CEO also stated that they had taken on more workers in 2020 and 2021, which led to the current impact. In addition, Spotify has also invested heavily in podcasting services.
Spotify today has over 600 million users on their platform, and aims to reach 1 billion users by 2030. With this move to reduce employees, Spotify is expected to reduce operating costs, while achieving operating profit rates even faster.