Spotify cuts its workforce to fine tune, its finances.

Hello, and you're listening to the Marketplace's Morning Report, live from the BBC World Service.

I'm Leanna Byrne.

Thanks for tuning in.

The Swedish music streaming giant Spotify says it's

cutting 1500 jobs. That's 70% of its workforce and it's the third round of job

layoffs this year. The BBC's Isie Greenfield joins me with more details. Hello is he?

Hi Leanna. So what's behind this decision?

Well in a memo sent to staff CEO Daniel X said slowing economic growth and

rising costs were to blame for the cuts which he said

would make Spotify a leaner company. Spotify employs about 9,000 people and Mr X said

substantial action to right-size our costs was needed for the company to meet its objectives.

Now some analysts are pointing to the fact that Spotify has invested heavily in podcasting.

Has it actually had any impact on its financial performance.

Yeah so Spotify has spent a loss of money on growing the business since it launched

and on securing exclusive content such as podcast created by the likes of Michelle and Barack Obama

as well as the Duke and Duchess of Sussex. The deal with Harry and Megan cost a reported

$25 million and saw just 12 episodes delivered over two and a half years

before the deal ended in June. Spotify's chief executive told the BBC in

September that some podcast content has worked but some of it hasn't.

Yes, very diplomatic there.

Daniel Ek, the CEO he says the company is taking steps to become more efficient.

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