Spotify to cut 17% of workforce, CEO says

PHOTO: In this file photo, Spotify CEO Daniel Ek speaks during a press event in New York May 20, 2015.PlayShannon Stapleton/Reuters
WATCH By the Numbers: Tech layoffs

Spotify plans to cut about 17% of its staff, CEO Daniel Ek said Monday.

"To be blunt, many smart, talented and hard-working people will be departing us," Ek said in a note to staff posted on the company's website.

The layoffs at the Stockholm-based music streaming service, which employs about 9,200 people, follow two rounds of cuts announced earlier this year.

PHOTO: In this file photo, Spotify CEO Daniel Ek speaks during a press event in New York May 20, 2015. Shannon Stapleton/Reuters
In this file photo, Spotify CEO Daniel Ek speaks during a press event in New York May 20, 2015.

The company said in June that 2% would be cut, following a 6% cut announced in January, according to filings with the U.S. Securities and Exchange Commission.

"Economic growth has slowed dramatically and capital has become more expensive," Ek said on Monday. "Spotify is not an exception to these realities."