Spotify to Cut 6% of Workers

Spotify (SPOT) is chopping 6% of its employees amid dwindling spending on its music streaming platform, becoming a member of a bunch of tech firms which might be retreating from a pandemic-era hiring spree.

Key Takeaways

  • Music streaming service Spotify introduced it’ll minimize 6% of workers, or about 600 individuals.
  • Spotify’s shopper and advertiser demand has dwindled in a cooling economic system.
  • The agency joins Alphabet Inc., Inc., and Meta Platforms in lowering headcounts after a hiring frenzy early within the pandemic.

Three years after Covid drove shoppers onto on-line and streaming providers, Spotify stated a cooling economic system and lackluster demand from shoppers and advertisers prompted the cuts as early as this week. Spotify joins Google guardian Alphabet Inc. (GOOG), Meta Platforms Inc. (META), Inc. (AMZN), and different tech firms in asserting sweeping worker reductions.

The Swedish firm employs greater than half its 9,800 workers within the U.S. The layoffs will influence about 600 employees, based on a company-wide notice CEO Daniel Ek despatched on Jan. 23. On the similar time, Spotify’s head of content material Daybreak Ostroff will depart the corporate after rising the service’s podcast content material 40-fold within the final 5 years.

Spotify shares had been up over 3% in early buying and selling on Jan. 23.

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