Spotify Wrapped 2023 for Spotify itself is a nightmare, with 1,500 people to be fired immediately

The music streaming company, Spotify's CEO Daniel Ek said the company is set to lay off 17% of its workforce because it wants to reduce its costs amid slow economic growth and costlier capital. This will be the third round of job cuts where almost 1,500 employees will be laid off. 

What

• CEO Daniel Ek, in a blogpost on the Spotify website, said, "To align Spotify with our future goals and ensure we are right-sized for the challenges ahead, I have made the difficult decision to reduce our total headcount by approximately 17% across the company. I recognise 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."
• This will be the third time Spotify will be laying off its workers this year.  
• Spotify had laid off 600 employees in January, followed by 200 more in June. 
• Daniel Ek wrote, "Thank you for sharing your talents with us. I hope you know that your contributions have impacted more than half a billion people and millions of artists, creators, and authors around the world in profound ways."

Details about the lay-off

• In a communication addressed to the staff, Daniel Ek mentioned that HR would send out a calendar invitation for a one-on-one discussion. The individual meetings are scheduled to occur by the end of the day on Tuesday, December 5.
• Spotify will pay five months of severance, based on local notice period requirement.
• All accrued and unused vacation will be paid to the employees that will be laid off.
• The company said that it has also decided to continue to cover the healthcare of laid-off employees during the severance period and those employees will be eligible for outplacement services for two months. 

Facing a 462 million euro loss (approximately $503 million) in the initial nine months of the year, Spotify is striving to strike a balance between investing in emerging sectors like its expanding advertising business and to achieve sustained profitability.

Seems like Spotify Wrapped for the company itself is a nightmare this year.

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