Spotify CEO Daniel Ek announced in a blog post that the company's latest round of layoff would “reduce our total head count by approximately 17% across the company.” That 17% equates to about 1,500 job cuts.

The company recently decreased the number of employees at its podcast division with 600 employees laid off in January and 200 in June, according to The Hollywood Reporter. This followed the job cuts done in October 2022.

The programming division was also hit with cuts, including Prince Harry and Meghan's exclusive podcasting deal canceled in June. Spotify also combined its podcasting studios Parcast and Gimlet into one division after it canceled 10 shows from both.

The 17% cut comes as the company is starting to focus on profitability. Spotify reported in October better-than-expected results in their subscriber gains, as well as a surprise operating profit. The company's paying premium subscribers jumped to 226 million in September-end from 220 million in June, surpassing its own forecast of 224 million.

Ek continued in the blog post, “I realize that for many, a reduction of this size will feel surprisingly large given the recent positive earnings report and our performance.”

He explained, “We debated making smaller reductions throughout 2024 and 2025. Yet, considering the gap between our financial goal state and our current operational costs, I decided that a substantial action to rightsize our costs was the best option to accomplish our objectives. While I am convinced this is the right action for our company, I also understand it will be incredibly painful for our team.”

“The decision to reduce our team size is a hard but crucial step towards forging a stronger, more efficient Spotify for the future. But it also highlights that we need to change how we work,” Ek concluded.