Daniel Ek, founder of Spotify $SPOT, announced that due to slower economic growth and a more difficult market, Spotify will lay off 17% of its workforce, roughly 1,500 people.

In an open letter to employees, Daniel Ek described the situation Spotify has found itself in and why it is making this significant reduction. In short: the capital available is no longer as cheap as in previous years, when the company recruited a lot of new reinforcements, and now its costs are prohibitive. I wonder what effect this will have on the stock. It's going to be quite a bit of cost cutting.