With economic growth decreasing “dramatically,” CEO Daniel Ek said he made the “difficult” decision.

Spotify employs approximately 9,000 people, and Mr Ek stated that “substantial action to rightsize our costs” was required for the company to accomplish its goals.

He stated that he realized the layoffs would be “extremely painful for our team.”

“I recognize this will impact a number of individuals who have made valuable contributions” , added the president. “To be blunt, many smart, talented and hard-working people will be departing us.”

Spotify laid off employees earlier this year, but current plans dwarf the statements.

Spotify declared a profit of €65 million (£55.7 million) for the three months to September, its first quarterly profit in more than a year, aided by price increases and increased user numbers.

The technology company has been expanding globally in order to reach a billion users by 2030.

It now has 601 million, up from 345 million at the end of 2020.

Mr. Ek stated that considering the recent “positive” outcomes, the announced job losses “will feel surprisingly large” to many people.