Spotify Will Lose Around 6% of Its Personnel
Spotify, the world’s largest music streaming platform, has announced plans to lay off about 6% of its 10,000 employees. The Swedish music-streaming giant cited the need to increase efficiency as the reason for the staff cuts.
“In hindsight, I was too ambitious to invest in revenue growth ahead of time,” said Spotify CEO Daniel Ek, who announced the layoffs.
It hasn’t turned a profit in a year despite its massive user base. The company is on the list of tech layoffs now that the tech market has collapsed.
Alphabet, the parent company of Microsoft and Google, announced similar layoffs last week. Microsoft said it would lay off about 10,000 employees, while Google said it would cut about 12,000 jobs.
Key positions like Dawn Ostroff, chief executive of its content and advertising business, have also been eliminated, with Spotify claiming the layoffs are part of the company’s restructuring.
Spotify has announced it will delay its hiring process to 2023 and is laying off employees now.
Almost all tech companies that overhired during the pandemic have followed this pattern of delaying hiring and then laying off employees.
“We take full responsibility for the steps that brought us here today,” Spotify CEO Daniel Ek wrote when announcing the layoffs.