Spotify to cut 17% of workforce

Music-streaming giant Spotify revealed on Monday that it will cut 17% of its staff in a concerted effort to slash costs.

Spotify, which employs roughly 9,000 people, will look to part with approximately 1,500 staff members in a "substantial action" aimed at rightsizing its cost base, something chief executive Daniel Ek said was a requirement if it was to meet its objectives.

"I recognise this will impact a number of individuals who have made valuable contributions," said Ek. "To be blunt, many smart, talented, and hard-working people will be departing us."

In its most recent set of results, Spotify posted a quarterly profit of €65.0m, its first quarterly profit in over a year, aided by both price increases and higher subscriber numbers.

As of 1005 GMT, Spotify shares were up 1.07% at €170.20 each.

Reporting by Iain Gilbert at Sharecast.com