Spotify CEO Daniel Ek surprised by how much laying off 1,500 employees negatively affected the streaming giant’s operations

wanderingmagus@lemm.ee to News@lemmy.world – 777 points –
Spotify CEO Daniel Ek surprised at negative impact of laying off 1,500 Spotify employees
fortune.com

When Spotify announced its largest-ever round of layoffs in December, CEO Daniel Ek hailed a new age of efficiency at the streaming giant. But four months on, it seems he and his executives weren’t prepared for how tough filling in for 1,500 axed workers would be.

The music streamer enjoyed record quarterly profits of €168 million ($179 million) in the first three months of 2024, enjoying double-digit revenue growth to €3.6 billion ($3.8 billion) in the process.

However, the company failed to hit its guidance on profitability and monthly active user growth.

Edit: Thanks to @Zerlyna@lemmy.world for the paywall-free link: https://archive.ph/wdyDS

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What do 10,000 workers do at a company that's primarily focused on a music streaming app?? I guess it just adds up, but I cannot wrap my head around that many people working on mainly 1 project. Are there just a bunch of behind the scenes projectswI don't know about? Like what are they all doing 😂

Edit: I think my comment was taken as agreeing with laying off workers. I completely disagree with that! I'm genuinely just curious what they are all doing.

It takes a village to run a global highly available service for hundreds of millions of users.