In Summary

  • Spotify CEO,Daniel Ek has announced it will be reducing its workforce by 17%.
  • This comes after Musician Talib Kweli complained that artists are not being paid well by the Spotify’s boss yesterday.
  • Spotify had reported a profit of €65m (£55.7m) for the three months to September.
Spotify CEO Daniel Ek: Photo courtesy

Swedish music-streaming giant Spotify has announced it is cutting 17% of its workforce,about 1,500 jobs as the company seeks to clampdown on costs.

Chief Executive of Spotify Daniel Ek said he had made the difficult decision with economic growth slowing dramatically.

This comes after one artist complained that Spotify does not pay artists well and it should adjust to $3K for a million streams.

Through Instagram account,Artist Talib Kweli pointed out some of the mistakes encountering Spotify’s boss urging him to pay artist well.

”Spotify made $12.356 billion in 2023.They pay us independent artists $0.003 per stream.The real support is in buying our singles or albums.We’d need a million streams to make $3K,”

”We out here posting Spotify Wrapped.But our paychecks don’t reflect any of the numbers.Not even close.Smh.”He wrote.

Spotify employs about 9,000 people, and Mr Ek said substantial action to right size the costs is needed for the company to meet its objectives.

READ ALSO:Wakadinali Beat Sauti Sol in 2023 Spotify Ranking

Reasons for axing workforce

Spotify CEO Daniel Ek :Photo courtesy

Ek said that the decision he made to the cut his employees would be incredibly painful for the team.

“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.”He said.

In its latest results,Spotify had reported a profit of €65m (£55.7m) for the three months to September – its first quarterly profit for more than a year which have helped by price rises and higher subscriber numbers.

Mr Ek said that given the recent positive results, the job cuts being announced will feel surprisingly large for many people.

He said the company considered making smaller reductions during 2024 and 2025.

“Yet, considering the gap between our financial goal state and our current operational costs,I decided that a substantial action to right size our costs was the best option to accomplish our objectives,”

“Despite our efforts to reduce costs this past year, our cost structure for where we need to be is still too big.”He concluded.

READ ALSO:Taylor Swift Is The Most Streamed Artist in UK.

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