Spotify Layoffs: 1,500 jobs being cut to ‘rightsize costs’

Spotify is eliminating approximately 17 per cent of its workforce, or 1,500 jobs.

The reduction marks the music streaming platform’s third mass layoff of the year. It cut around 600 jobs in January and another 200 in June.

What’s happening at Spotify?

In an email to staff that was obtained by CNBC, Spotify CEO Daniel Ek said the company is cutting hundreds of jobs to align with “our future goals and ensure we are right-sized for the challenges ahead.”

“I realize that for many, a reduction of this size will feel surprisingly large given the recent positive earnings report and our performance,” Ek noted in the Dec. 4 email.

“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.”

Spotify layoffs in Canada

It remains unclear how many Spotify employees in Canada are affected by the latest reduction.

According to the company’s LinkedIn page, it employs a national workforce of more than 200 people.

Severance offers for Spotify employees

While Ek said that the average Spotify employee will receive “approximately five months of severance“, Canadian workers who are let go could be owed as much as 24 months’ pay.

In Canada, non-unionized employees at the music streaming platform are entitled to a full severance package when they lose their jobs due to downsizing, corporate restructuring, or the closure of the business.

This includes non-unionized individuals working full-time, part-time, or hourly in Ontario, Alberta, and B.C.

The amount of compensation you are entitled to is calculated using a variety of factors, including age, length of service, position at the company, and your ability to find new work.

WATCH: Employment lawyer Lior Samfiru explains what rights employees have if they are being fired or let go on an episode of the Employment Law Show.

Before you accept any severance offer, have an experienced employment lawyer at Samfiru Tumarkin LLP review it and your employment contract.

If you don’t receive the correct amount, which happens often, you have been wrongfully dismissed and should take legal action.

Non-unionized employees in Canada have up to two years from the date of their dismissal to pursue proper severance pay.

LEARN MORE
• Severance for provincially regulated employees
• Rights to severance for tech sector staff
• Severance packages during mass layoffs

Major tech layoffs continue

Spotify isn’t the only tech company that has announced sweeping layoffs in 2023.

Big names, including Unity, Broadcom, ByteDance, Amazon, Informatica, Ubisoft, Bungie, Splunk, and Nokia, have significantly scaled back their staffing levels as they continue to navigate challenging economic conditions.

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• Firm launches $130M class action against Shopify for breach of contract
• Report: Canadian video software company Vidyard slashes 20% of staff
• Where are layoffs happening in Canada?

Lost your job? Talk to an employment lawyer

If you have been fired or let go for any reason, contact the experienced employment law team at Samfiru Tumarkin LLP.

Our lawyers in Ontario, Alberta, and B.C. have successfully represented tens of thousands of non-unionized individuals.

In addition to severance package negotiations, we can assist you on a broad range of employment matters, including:

If you are a non-unionized employee who needs help with a workplace issue, contact us or call 1-855-821-5900 to get the advice you need and the compensation you deserve.