In a pre-holiday blow to its workforce, Spotify announced on December 4, that it will be laying off approximately 1,500 employees, representing 17% of its global workforce. This marks the third round of job cuts for the music streaming giant in 2023, following earlier layoffs of 600 employees in January and 200 in June. Now, Business Insider has reported that Spotify CEODaniel Ek sent a memo to the rest of the employees explaining the one big reason.In the memo, as per a report by Business Insider, Ek said that while productivity was up, efficiency wasn’t. “By most metrics, we were more productive but less efficient. We need to be both. While we have done some work to mitigate this challenge and become more efficient in 2023, we still have a ways to go before we are both productive and efficient,” Ek said in the memo.
Not enough efficiency
The Spotify CEO said that the company had many employees who weren’t contributing enough. “Today, we still have too many people dedicated to supporting work and even doing work around the work rather than contributing to opportunities with real impact,” he wrote in the memo. In other words, the main reason was that employees weren’t adding substance to the company and not doing meaningful work.
Ek had two words for the rest of the employees: relentlessly resourceful. “More people need to be focused on delivering for our key stakeholders – creators and consumers. In two words, we have to become relentlessly resourceful,” he noted in the memo.
Spotify’s CFO Paul Vogel is also leaving the company. On his company’s CFO’s departure, Ek said that that Spotify was looking at a CFO with different mix of experiences. “Over time, we’ve come to the conclusion that Spotify is entering a new phase and needs a CFO with a different mix of experiences,” he said in a statement.
Not enough efficiency
The Spotify CEO said that the company had many employees who weren’t contributing enough. “Today, we still have too many people dedicated to supporting work and even doing work around the work rather than contributing to opportunities with real impact,” he wrote in the memo. In other words, the main reason was that employees weren’t adding substance to the company and not doing meaningful work.
Ek had two words for the rest of the employees: relentlessly resourceful. “More people need to be focused on delivering for our key stakeholders – creators and consumers. In two words, we have to become relentlessly resourceful,” he noted in the memo.
Spotify’s CFO Paul Vogel is also leaving the company. On his company’s CFO’s departure, Ek said that that Spotify was looking at a CFO with different mix of experiences. “Over time, we’ve come to the conclusion that Spotify is entering a new phase and needs a CFO with a different mix of experiences,” he said in a statement.