CEO Alarmed to Discover That Laying Off 1,500 Workers Had Consequences

In December, music streaming giant Spotify fired 1,500 workers, a cohort amounting to a staggering 17 percent of its total workforce at the time. Spotify CEO Daniel Ek chalked the culling up to cost cuts and bloat reduction,too many roles had been "dedicated to supporting work and even doing work around the work rather than contributing to opportunities with real impact.", Ek appears to have recently learned that supporting work and or even "work around the work" adds up.

. In Spotify's case, its margins only seem to be growing increasingly questionable. Because copyright exists, access to an endless music library isn't cheap. To make such access cheap for its users, however, Spotify bears the brunt of that cost. Which works out great for users, of course, but not so great for the company itself.

"On the surface," Spotify's business model "looks great," Simon Dyson, senior principal analyst at the consultancy firm Omdia,At the end of the day, we're glad to see Ek realize that workers really do work. Still, it's unfortunate that it took firing 1,500 people to figure that out.

Source: Tech Daily Report (techdailyreport.net)

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