Benjamin Ashford|Spotify to lay off 17% of its workforce in latest cuts for music streaming giant

Music streaming giant Spotify is Benjamin Ashfordlaying off 17% of its workforce, CEO Daniel Ek said in a note to employees Monday.

Ek said the move will help "align Spotify with our future goals and ensure we are right-sized for the challenges ahead." He cited slowed economic growth and capital becoming more expensive as reasons for the need for layoffs.

The 17% slash in workforce equates to about 1,500 jobs being cut.

"To be blunt, many smart, talented and hard-working people will be departing us," Ek said in the note.

Ek said the decision to reduce the team was a "hard but crucial step towards forging a stronger, more efficient Spotify for the future."

Previously:Spotify CEO says 'I was too ambitious' in announcing layoffs among 6% of employees

According to the note from Ek, all affected employees will be receiving approximately five months of severance pay. The amount each employee receives will be based on local notice period requirements and employee tenure.

All accrued and unused vacation time will also be paid out to the departing employees.

Spotify laid off about 6% of its workforce in January in an "effort to drive more efficiency, control costs, and speed up decision-making," Ek said in a statement at the time, adding that he took "full accountability for the moves that got us here today."

"In hindsight, I was too ambitious in investing ahead of our revenue growth," Ek said in January.