• Discounts and special offers
  • Subscriber-only articles and interviews
  • Breaking news and trending topics

Already a subscriber?

By signing up, you accept Moneywise's Terms of Use, Subscription Agreement, and Privacy Policy.

Not interested ?

Spotify laid off thousands of employees last year

Like many other tech giants, after a glut of hires during the COVID-19 pandemic, Spotify started cutting back by handing out pink slips to staffers.

In December, CEO Daniel Ek sent employees a note announcing the company’s third round of job cuts within a year — this time shrinking its workforce by 17%, or about 1,500 employees. Approximately 2,300 employees were laid off in 2023.

"Economic growth has slowed dramatically and capital has become more expensive," Ek wrote, adding that “being lean is not just an option but a necessity.”

The announcement took place days after Spotify celebrated its annual Wrapped campaign with an exclusive, celebrity-packed party at a London superclub, headlined by the likes of Sam Smith, Charli XCX and Chase & Status.

Don't miss

The music streamer says it will continue parties, events

A Spotify spokesperson told Business Insider the company would continue events such as Wrapped, Stockholm Intro Days and the Best New Artist Grammy party, since they’re "key to promoting artists, engaging listeners, encouraging collaboration amongst employees and highlighting our services."

However, the company did not comment on exactly how much it shells out on these extravagant events.

The latest edition of Spotifest — an exclusive music festival for company employees — took place at The Brooklyn Mirage in New York last August, according to Business Insider, despite Ek calling for more moves to “control costs” earlier in the year.

The lavish event featured headliners Diplo and T-Pain, acrobats and drag performers, reports Business Insider. Attractions also included a barbershop, photo booths and a temporary-tattoo studio.

It took place two months after the company slashed 200 jobs.

"It was surprising to me that they stated they're on a cost-cutting drive but then continued spending," one former employee said, per Business Insider. Another person, who claimed to deal with budgets, apparently tried to broach the issue of the company’s spending habits, but their concerns were brushed aside.

What to read next

Serah Louis is a reporter with Moneywise.com. She enjoys tackling topical personal finance issues for young people and women and covering the latest in financial news.

Disclaimer

The content provided on Moneywise is information to help users become financially literate. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter.