Waste and layoffs: Spotify invited employees to a massive party and then fired 1,500 of them - and that's not all

Some employees believe that Spotify spends too much on parties and events, especially during the layoffs of thousands of people and the declared reduction of additional expenses. According to Business Insider, 14 current and former anonymous company employees shared details of extravagant parties which they deemed untimely. In November, Spotify marked its annual Wrapped campaign with an exclusive party at a London superclub last year. Famous musicians were invited to perform their hits at the event attended by employees, celebrities, media, and fans who were among the top listeners of artists on Spotify. Four days later, the company cut 1500 jobs, including some employees who worked on the Wrapped campaign. CEO Daniel Ek sent a clear letter to the employees announcing the layoffs, noting that Spotify's spending structure is still too inflated. Like many other companies, Spotify hired an excessive number of employees during the pandemic. From 2019 to 2022, the number of employees nearly doubled. Last year, the company cut 2300 jobs in three waves of layoffs: in January, June, and December. Spotify is in the entertainment business, so a certain amount of extravagant events is part of the process. However, these employees say that the expenses on events have gone too far, considering the company's cost-saving efforts. A Spotify representative said the company will continue events like Wrapped, Stockholm Intro Days, and the Grammy Best New Artist party. The company's press secretary says this is key to promoting artists, attracting listeners, encouraging collaboration among employees, and advertising the company's services. Representatives declined to comment when asked how much was spent on parties and events. Spotifest, a music festival exclusively for Spotify employees, is cited by workers as a bright example of lavish spending. The latest Spotifest took place in August last year at The Brooklyn Mirage in New York. Hundreds of employees gathered where headliners Diplo and T-Pain performed on a huge stage with laser lights shining on the crowd. There were acrobats, dancers, backpacks serving beer, a barber shop, photo zones, music listening stations, games, and a temporary tattoo studio with the Spotify logo. A month prior, the company had cut 200 jobs. Spotify's events are mainly divided into two categories. There are public parties and events that work for brand marketing and events exclusively for employees. The company's headquarters are located in Stockholm, and it sends many new employees there for "Intro Days" where they interact, listen to speakers, and learn about Spotify's culture. A former employee says the company "spends a lot of money bringing people to Sweden to drink the Kool-Aid". Several people who went on trips reported that the company accommodates employees in hotels for three to five days and covers all meals. "We are constantly thinking about efficiency," said Spotify CEO Daniel Ek to analysts during a profit report in February.