Spotify Layoffs Continues In Q3 2023 Despite Premium Price Increase

Streaming service platforms like Spotify and Apple Music have turned the way people consume music in the past few years. With the recently announced increased cost of Spotify Premium rates, Spotify management hints that new layoffs from the company will be enacted in the coming months.

These came after the company sacked 200 employees in their podcast division because of company restructuring.

Spotify Layoffs 2023

More Spotify layoffs might be experienced in the coming months, Variety suggests after an earnings call with the streaming giant.

Spotify CEO Daniel Ek and CFO Paul Vogel answered questions about the company's direction and investor confidence in a recent conversation that the publication got a hold of.

Asked how they plan to keep operating expenses efficient while also maintaining the right level of investment, Ek brushed lightly on the company's upward trend during the coronavirus pandemic.

"We probably got a little bit ahead of ourselves in that investment, so we've rightsized our staff," he claimed.

At the start of 2023, Spotify layoffs took place, axing 6% of their global workforce. The company also sacked 200 employees last June 2023, specifically in their podcast division.

Vogel's answer seemed to hint that more Spotify layoffs are coming soon in the third quarter of the year.

"Q2 was last quarter where we had headcount higher year over year, and we expect our year over year headcount to be down in Q3 - we'll see where that goes going forward," he suggested.

The publication noted that a rep from the company said that Vogel might be referring to the initial Spotify layoffs. However, they declined to comment more on the subject.

Spotify Premium Price Increase

The news of more Spotify Layoffs in 2023 came after the company announced that Spotify Premium prices will increase.

Spotify Premium rates have increased a dollar or two per month for US subscribers.

Spotify Premium Individual plans previously priced at $10 will now be $11, while Spotify Premium Duo plans hiked to $15 from $13. Meanwhile, the Spotify Premium Family Plan, which can host up to six accounts is now $17 from $15. Spotify Premium Student plan also saw a dollar increase from $5 to $6. (via USA Today)

"The market landscape has continued to evolve since we launched," Spotify said. "So that we can keep innovating, we are changing our Premium prices across a number of markets around the world. These updates will help us continue to deliver value to fans and artists on our platform.

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