Spotify CEO Surprised Layoffs Impacted Business

Spotify CEO Daniel Ek seemed surprised that laying off employees had a negative impact on operations, not exactly a ringing endorsement of his business acumen....
Spotify CEO Surprised Layoffs Impacted Business
Written by Matt Milano
  • Spotify CEO Daniel Ek seemed surprised that laying off employees had a negative impact on operations, not exactly a ringing endorsement of his business acumen.

    Spotify laid off 6% of it workforce in early 2023, and then laid off another 17% of its staff in December. The last layoff totaled 1,500 employees. At the time, according to The Verge, Ek said too many of the company’s roles were “dedicated to supporting work and even doing work around the work rather than contributing to opportunities with real impact.”

    According to Fortune, by way of Futurism, it seems Ek was surprised by the impact of laying off that many employees. Ek doubled down, saying the move was the “right strategic decision,” but that it “did disrupt our day-to-day operations more than we anticipated.”

    “It took us some time to find our footing,” Ek added, “but more than four months into this transition, think we’re back on track.”

    Layoffs have become all too common in the tech industry over the last couple of years, with some defending them as necessary and others saying they are an overreaction. In the case of Ek and Spotify, it seems mass layoffs were a complicated endeavor.

    Spotify’s example should serve as a cautionary tale to other companies that letting employees go is not always as cut and dry as it may seem.

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