The music streaming giant said Monday (December 4) it was to bring down costs.
It is the third round of layoffs at the company this year.
It let go 600 of its staff in January, and 200 more in June.
Spotify CEO Daniel Ek sent a letter to employees explaining the company hired more in 2020 and 2021 due to the lower cost of capital.
He further said the firm considered smaller reductions over the next two years, but he went with a larger cut now due to the gap between Spotify's financial goals and current operational costs.
Spotify invested more than a billion dollars to build up its podcast business, signing celebrities like Prince Harry and Meghan Markle, as well as Kim Kardashian.
It also expanded its market presence in most countries as it tries to reach a billion users by the next decade.
It currently has 601 million users, up from 345 million at the end of 2020.
The company swung to a profit in the third quarter, helped by price hikes in its streaming services and subscriber growth in all regions.
Jobs cuts have been a feature of this year for tech companies.
Some have begun reducing their workforce again recently, with announcements coming from Amazon and Microsoft-owned LinkedIn.
