Massive Streaming Service Plans To Layoff Hundreds Of New Yorkers

Hundreds of workers at a popular streaming service in New York will be out of a job in 2024. The company recently submitted a notice to New York State about the looming layoffs.

Spotify Plans To Lay Off More Than 750 Employees

As everyone is sharing their Spotify Wrapped for 2023, the company is planning to let go of 755 employees in New York.

Spotify is a Swedish audio streaming and media services provider founded on 23 April 2006 by Daniel Ek and Martin Lorentzon. It is one of the largest music streaming service providers, with over 590 million monthly active users, including 226 million paying subscribers, as of September 2023.

In 2022 its revenue was 11.7 billion EUR. The company had 9,241 employees as of September 2023 in 15 offices. Spotify has more free users at 361 million, than paying users at 226 million.

According to the notice it submitted to New York State, the 755 employees will be terminated from two office - 150 Greenwich Street, New York NY, 10007 and 41 Flatbush Ave., Floor 7, Brooklyn NY, 11217. The majority of layoffs are expected to happen on March 4, 2024. Of the 755 employees, 24 will be laid off in phases March 31, 2024, and August 25, 2024. The company sites the reason for the layoffs as economic.

According to CNBC,

Spotify reported a surprise profit for the third quarter — its first quarterly profit in a year and a half.

In June of 2023 the company laid off 200 people, according to CNBC. Combined with the newly announced cuts, the company will have terminated approximately 10 percent of its workforce by August 2024. And who knows, more cuts could be planned at other offices.

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