Spotify’s CEO, Daniel Ek revealed a major restructuring plan for the company which will result in a workforce reduction of around 17%.

What Happened: The announcement came to light earlier today when Ek issued a note to all employees. Ek stressed that for Spotify to grow as a sustainable business and align with future goals, the company needs to make tough decisions in the face of a challenging economic environment.

“To align Spotify with our future goals and ensure we are right-sized for the challenges ahead, I have made the difficult decision to reduce our total headcount by approximately 17% across the company,” Ek stated.