Spotify, the Swedish music-streaming firm, has stated that it would lose 17% of its staff, or around 1,500 positions, in order to reduce expenses with economic growth decreasing "dramatically," CEO Daniel Ek said he took the "difficult" decision.
Spotify employs about 9,000 people, and Ek stated that "substantial action to rightsize our costs" was required for the firm to accomplish its goals.
He added he understood the cuts would be "incredibly painful for our team".
"I recognise this will impact a number of individuals who have made valuable contributions", Ek said. "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 business has been expanding globally in order to achieve a billion users by 2030.
It now has 601 million, up from 345 million at the end of 2020.
Ek stated that considering the recent "positive" outcomes, the announced job losses "will feel surprisingly large" to many individuals.
He stated that Spotify contemplated making modest cuts in 2024 and 2025, but determined that more extreme action was required to strengthen the company's profitability.
Spotify has spent a lot of money since its inception on expanding the company and acquiring unique content, such as podcasts developed by Michelle and Barack Obama, as well as the Duke and Duchess of Sussex.
The contract with Harry and Meghan cost a whopping $25 million (£19.7 million) and saw only 12 episodes delivered over two and a half years until it expired in June.
Commenting on podcast content, Ek told the BBC in September: "The truth of the matter is some of it has worked, some of it hasn't."