Spotify to lay off 6% of its workforce
Spotify, the audio streaming platform, is laying off 6% of its workforce, or about 600 employees, joining a growing list of big tech companies that are cutting costs amid continued worries about the global economy.
“As you well know, over the past few months we’ve made a tremendous effort to control costs, but it just hasn’t been enough,” Spotify chief executive Daniel Ek said in a note on Monday. to employees. The company had more than 9,800 employees at the end of the third quarter, according to regulatory filings.
The music and podcast platform is the latest tech company to lay off employees to rein in spending as worries about a recession loom. Last week Alphabet, Google’s parent company, laid off 12,000 employees and Microsoft laid off 10,000. Media companies also cut staff. Vox Media cut 7% of its workforce on Friday, and in December the Washington Post told employees there would be layoffs at the company.
The layoffs at Stockholm-based Spotify were largely due to macroeconomic challenges, Mr Ek said in the note. “I was too ambitious to invest before our revenue grew,” he wrote. The company provides employees with approximately five months of severance pay and health care in addition to career counseling services. Spotify will bear between 35 and 45 million euros in severance pay, the company said in a filing with the Securities and Exchange Commission.
Mr. Ek also announced some changes to Spotify’s leadership as part of an effort to “restructure our organization”. Dawn Ostroff, director of content and advertising for the company, is leaving. A seasoned television and video executive, she was hired in 2018 as Spotify looked for ways to expand its offerings beyond music.
As part of the reorganization, Alex Norström, chief commercial officer, and Gustav Söderström, director of research and development, will assume the roles of co-presidents.