“I realize that for many, a reduction of this size will feel surprisingly large given the recent positive earnings report and our performance.”
Daniel Ek is cutting about 17% of Spotify’s staff right after a good quarter. His reason is the cheap capital of 2020 and 2021, which Spotify spent on team expansion, content and new verticals. Now the staff are “bandmates” with a calendar invite from HR within two hours. Ek made the bet, and the employees cover it with an average of five months of severance.