According to NME, Spotify has reported record profits over $860 million, which follows 17 percent of staff being laid off, subscription prices rising and costs being cut across the board. The growth of the music streaming platform follows as streaming continues to dominate the music industry and the platform has gone on to offer its subscribers access to podcasts and audiobooks in addition.
Currently, Spotify has around 615 million users across the world. In late 2023, Spotify announced that they were cutting down 17 percent of its workforce in order to save costs. That was after an earlier decision to lay off another 6 percent of its staff at the start of 2023, which at the time the company said was to promote “speed.”
Chief executive Daniel Ek mentioned that he made the “difficult” decision while the economic growth “slowed dramatically.” Spotify employs around 9,000 people, which means 1,500 jobs were estimated to have been lost in the current round of layoffs. This also follows the news that the streaming service had officially demonetized all songs on the platform with less than 1000 streams.
The policy was launched on April 1 and it went into effect when the streaming platform released a report last year, Modernising Our Royalty System, where the news of the decision first appeared. The move has been planned by the platform for a while.
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