Spotify Layoffs 2026: What’s Happening & Severance Rights in Canada

Spotify has reduced its podcasting division by approximately 3% — mostly affecting staff at Spotify Studios and The Ringer. (Variety)

Sources claim the workforce reduction is aimed at helping the digital music streaming platform improve execution, speed, and alignment across teams.

Back in 2020, Spotify bought The Ringer, founded by former ESPN executive Bill Simmons, for about $250 million in cash.

This page explains:

• What’s happening with layoffs at Spotify
• Whether a layoff at Spotify is permanent
• How much severance Spotify employees in Canada may be owed
• What to do before signing a severance offer

Spotify Layoffs: A Timeline of Recent Job Cuts

Spotify has significantly restructured in recent years, with job cuts that have affected teams linked to Canadian operations.

• Dec. 2023: Spotify is eliminating approximately 17% of its workforce, or 1,500 jobs, in an effort to “rightsize our costs.”
• June 2023: Spotify is cutting approximately 200 jobs, or 2% of its workforce, as it enters the “next phase” of its podcasting strategy.
• Jan. 2023: Spotify is laying off 6% of its workforce. CEO Daniel Ek said the company had been “too ambitious” with its growth.

Is a Spotify Layoff Temporary or Permanent?

For non-unionized employees at Spotify, a layoff is almost always treated as a termination without cause, even if the following language is used:

• “Restructuring”
• “Reorganization”
• “Transformation”
• “Temporary layoff”

Unless your employment contract explicitly allows for Spotify to temporarily lay you off, the company can’t place you on indefinite layoff without terminating your employment — meaning they must provide full severance pay.

Severance Pay for Spotify Staff

In Canada, non-unionized employees, including those at Spotify, are often owed far more severance pay than what’s outlined in their initial offer.

Severance is based on common law entitlements, not just minimum standards. Factors include:

• Age
• Length of service
• Position and seniority
• Availability of comparable jobs

In many cases, Spotify employees in Canada can be owed up to 24 months of compensation.

Severance may include:

• Base salary
• Continued benefits
• Bonus and incentive compensation
• Stock, equity, or RRSP contributions (where applicable)
• Vacation pay
• Other earned compensation

First offers often:

• Cover only minimum entitlements
• Exclude bonuses or incentives
• Impose short signing deadlines
• Undervalue long-service or senior employees

Severance Offers: Common Problems

Canadian employees affected by layoffs frequently report issues such as:

• Severance offers far below legal entitlements
• Missing or unclear compensation breakdowns
• Benefits cut off too early
• Bonuses excluded without justification
• “Temporary layoff” language used improperly
• Pressure to sign within 24–48 hours

Wrongful Dismissal and Spotify Layoffs

A wrongful dismissal occurs when major employers, including Spotify, fail to provide full severance required under common law.

You may have a claim if:

• Your severance offer is too low
• A termination clause isn’t enforceable
• You were pressured to accept your severance offer on the spot
• Bonuses or benefits were excluded from your severance package
• You were terminated while on medical, parental, or disability leave
• Spotify labelled your termination a “temporary layoff” without contractual authority

Large-scale layoffs at Spotify don’t reduce their legal obligations in Canada.

Laid Off at Spotify? Next Steps

If you’ve been laid off at Spotify:

1. Don’t sign your severance offer immediately
2. Gather your employment contract, bonus plans, and benefits information
3. Use the Severance Pay Calculator to double-check your entitlements
4. Keep records of your role, compensation, and length of service
5. Speak with an employment lawyer before agreeing to anything

Spotify Layoffs: Frequently Asked Questions

How much severance can employees at Spotify receive?

Up to 24 months — depending on age, service, and position.

Are Spotify layoffs permanent?

For non-unionized employees, yes. A layoff is typically a termination.

Does Spotify have to include bonuses in severance?

Often yes — especially if bonuses were a regular part of compensation.

Can Spotify terminate employees on leave?

This can raise serious wrongful dismissal and human rights issues.

Can employment lawyers represent unionized Spotify staff?

No. Unionized employees at Spotify must go through their union.

Lost Your Job at Spotify? Get Help Now

If Spotify has laid you off, or offered a severance/buyout package, don’t do anything before seeking legal advice.

Samfiru Tumarkin LLP, one of Canada’s most reviewed employment law firms, has helped more than 50,000 Canadians secure the compensation they’re legally entitled to.

Disclaimer: The materials above are provided as general information about the rights of non-unionized employees in Canada. It is not specific to any one company and SHOULD NOT be read as suggesting any improper conduct on the part of any specific employer, or a relationship between Samfiru Tumarkin LLP and a specific employer.