Together with
The Future. Last November, Spotify threw a huge, ritzy Wrapped party — then fired 1,500 workers. This is a head scratcher for music streaming giant, which is facing major scrutiny for the decision. The pressure may force Spotify to reorganize their budget structure entirely.
Murder on the dance floor
Spotify is facing major scrutiny as it slashes huge chunks of its workforce.
- Spotify fired 17% of its workforce following the November Wrapped party, with CEO Daniel Ek citing a bloated company cost structure.
- This seems to be true since Spotify fired 2,300 workers in 2023 after doubling its staff from 2019 to 2022.
- But the company has said it’s set on throwing parties, some of which entail flying new hires across the world for presentations many employees find pointless.
Victims of success
Spotify pays around 70% of its revenue to the owners of music rights, so their margins don’t improve as they grow. Firing workers can only do so much.
Spotify is expanding into alternate forms of media to grow more profitable, and this might save them… but parties probably won’t.
TOGETHER WITH CANVA
No design skills needed! 🪄✨
Canva Pro is the design software that makes design simple, convenient, and reliable. Create what you need in no time! Jam-packed with time-saving tools that make anyone look like a professional designer.