Spotify announced 1500 job cuts due to "rising costs" after the company made its first quarterly profit.

CTOnews.com, December 4 (Reuters)-Spotify said in an email today that it will lay off 1500 employees, or 17% of its workforce, because of "rising costs". The company laid off 600 employees in January and another 200 in June.

▲ Tuyuan Reuters CTOnews.com previously reported that Spotify's third-quarter 2023 results released in October showed an operating profit of 32 million euros (CTOnews.com Note: currently about 249 million yuan), the first quarterly profit for Spotify since 2021, thanks to higher gross margins and lower marketing and personnel costs.

But Daniel Ek, Spotify's chief executive, claimed at the time that the company was still focused on efficiency to "get more out of every dollar".

Daniel Ek said today that in view of the recent positive earnings report and its results, as well as the company's rising staff costs, Spotify plans to make more layoffs to further improve profitability:

We discussed fewer layoffs in 2024 and 2025, however, given the gap between our financial target status and our current operating costs, I finally decided to take 'substantive action' to optimize our costs. to achieve our goals.

Related reading: "Spotify earned 32 million euros in the third quarter, making a quarterly profit for the first time since 2021."