About six % of the corporate’s workforce, or roughly 600 jobs, will likely be reduce, and its chief content material and promoting business officer will even depart as a part of a broader reorganisation.
(AP)
Music streaming agency Spotify Technology SA has introduced that’s slicing six % of its workforce, or roughly 600 jobs, including to a glut of layoffs within the expertise sector as firms put together for a potential recession.
The firm additionally stated in its announcement on Monday that its chief content material and promoting business officer, Dawn Ostroff, will depart as a part of a broader reorganisation.
“In hindsight, I was too ambitious in investing ahead of our revenue growth. And for this reason, today, we are reducing our employee base by about six percent across the company,” Spotify CEO Daniel Ek stated on Spotify’s official weblog.
Spotify, which had about 9,800 full-time workers as of September 30, stated it expects to incur about 35 million euros ($38.06 million) to 45 million euros ($48.95 million) in severance-related fees.
Shares within the firm rose 3.5 % in premarket buying and selling.
Spotify’s transfer comes at a time when tech firms are going through a requirement downturn after two years of pandemic-driven progress throughout which they’d employed aggressively.
That has led the likes of Meta Platforms Inc to Microsoft Corp to shed tens of hundreds of jobs.
Last week, Microsoft introduced that it’s letting go of a minimum of 10,000 of its employees worldwide.
Sweden-based Spotify has seen advertisers pull again on spending, mirroring a development seen at Meta and Google father or mother Alphabet Inc, as fast rate of interest hikes and the fallout from the Russia-Ukraine battle stress the economic system.
The firm had stated in October that it will decelerate hiring for the remainder of the yr and into 2023.
Its shares greater than halved in a dismal 2022 for tech shares.
READ MORE: Microsoft lays off 10,000 workers as job cuts in tech sector unfold
Source: Reuters
