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.