Spotify Technology SA is cutting 17% of its workforce, marking at least the third time that the streaming service has carried out mass layoffs this year in an effort to shrink costs and drive profitability. 

Employees affected by the layoffs will be notified on Monday, the music streaming company said in a statement. Roughly 1,500 jobs are being eliminated, a spokesperson said. 

The streaming audio giant is on pace to add more than 100 million users this year—its biggest year yet—and reported a rare profit last quarter. But CEO Daniel Ek said in a note to employees on Monday that Spotify is still spending too much, citing an economic slowdown and the rising cost of capital.

“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,” Ek said in the statement. “More people need to be focused on delivering for our key stakeholders – creators and consumers.”

Spotify projected operating losses for the fourth fiscal quarter in the range of €93 million ($101 million) to €108 million, citing charges of €130 million to €145 million from severance payments and related real estate changes. It had previously projected operating income of €37 million.

Ek said that the company had debated making smaller cuts during the next two years but ultimately decided on a “substantial action” to get costs in line. 

The shares rose as much as 2.5% in premarket trading on Monday before exchanges in New York opened. Spotify had closed down 2.4% on Friday at $180.69. 

Spotify has long lost money because of the terms of licensing agreements with music rights holders. It spent billions of dollars on podcasting to diversify its business model, but has since scaled back its investment in original audio series.

The company previously cut about 6% of its workforce in January and another 2% in June.

The company will focus on a leaner structure that will allow it to be more strategic about how it reinvests profits in the business, Ek said. He’ll address the cuts on Wednesday in a meeting with employees. 

“Economic growth has slowed dramatically and capital has become more expensive,” Ek said. “Spotify is not an exception to these realities.”

—Bloomberg News