Spotify CEO Surprised Layoffs That Affected Business

Spotify CEO Daniel Ek seemed surprised that laying off employees had a negative impact on business, and not exactly a compelling endorsement of his business acumen.

Spotify laid off 6% of its workforce in early 2023 and then laid off another 17% of its workforce in December. The latest layoffs involved a total of 1,500 employees. At the time, according to The edgeEk said too many of the company’s roles were “dedicated to supporting work and even doing work around work, rather than contributing to opportunities with real impact.”

According to Fortunein a manner of Futurismit seems Ek was surprised by the impact of firing so many employees. Ek doubled down, saying the move was the “right strategic decision” but that it “disrupted our daily operations more than we expected.”

“It took us some time to find our footing,” Ek added, “but after more than four months into this transition, we think we are back on track.”

Layoffs have become all too common in the tech industry in recent years, with some defending them as necessary while others said they were an overreaction. In the case of Ek and Spotify, it appears that mass layoffs were a complicated undertaking.

Spotify’s example should serve as a warning to other companies that letting employees go isn’t always as cut and dry as it seems.