Spotify expanding US operations, adding 1000 jobs

Image: 4 World Trade Center, Manhattan, NYC

Spotify, the largest music streaming service in the world, is expanding its US operations. It is moving its New York office to the 16-acre World Trade Center in Lower Manhattan, announced today by New York Governor Andrew Cuomo.

The relocation of its HQ will allow an extra 1,000 new jobs by next year, in addition to the 832 that have been working cramped in its current offices in the Midtown South area of Manhattan. Spotify has 2000 employees worldwide.

“New York is rapidly emerging as the nation’s leading hub for tech and innovation, creating more jobs and more opportunities and emerging as the epicenter of the 21st-century economy,” Cuomo said.

“We are proud to welcome Spotify to 4 World Trade Center and to have the future of music be a part of the bright future of our dynamic tech community.”

Spotify’s new office in the 56-storey skyscraper will occupy a massive 378,000 square feet when the company moves into the complex in 2018.

As part of the deal, for 15 years of its lease, Spotify will receive up to $11 million from a state rent reduction incentive program from Empire State Development. It was created to lure businesses back to the World Trade Center site.

Spotify, founded in 2006, has the largest subscriber list of the major streaming services – 40 million, compared to 100 million users who opt for free the no-ad-break service.

It is valued at US$8 billion and reportedly considering a US stock market listing. However, it has not turned a profit, as it concentrates on funding international expansion. In 2015, it posted an operating loss of US$195.5 million.