The Facts
Music streaming platform Spotify on Monday announced it’s laying off 17% of its workforce — approximately 1.5K workers.
In a letter to employees posted on Spotify’s blog, CEO Daniel Ek called the cuts part of a “strategic reorientation.”
The Spin
Narrative A
Spotify is no different than the other major tech firms — including Amazon and Meta — who have had to make cuts now that pandemic-era demand has died down. Investors know there was too much redundancy in Spotify's staffing, and now the platform has shown it's serious about consistently making a significant profit after years of focusing on just user totals.
Narrative B
Spotify has been mismanaged for years. While barely compensating the artists it relies on for content, it spent way too much on high-profile podcasts — a decision that cost Spotify financially and also courted controversy. All the while it's barely eked out a profit and now it's had its third staff cut of the year.
