Music streaming service Spotify says it’s laying off 6% of its workforce, taking another tech company’s ally as the economic outlook worsens
LONDON (AP) – Music streaming service Spotify said Monday it is cutting 6% of its global workforce, taking another tech company’s ally as the economic outlook weakens after the pandemic. ,
CEO Daniels sent a message to employees announcing the reorganization that was also posted online.
One wrote, “As part of lifestyle improvements in management,” and to further cover my costs, I have made the difficult but necessary decision to reduce my workforce.
Democratic, big tech authorities such as Microsoft and Google announced ten job cuts this month as the industry grapples with the economic impact during the COVID-19 pandemic.
Stockholm-based Spotify had benefited from the pandemic lockdown as more people sought entertainment while they were stuck at home. This signaled that the company’s business model, which had long been focused on growth, had to evolve.
He said the company’s operating costs last year more than doubled revenue growth, a gap that would be a “volatile hesitation” in any economic climate, but is even more difficult to close with a “challenging midyear environment.”
Spotify has made “a lot of effort” over the past few months to work on costs, “but it’s not enough,” he said.
“I anticipate maintaining a strong tailwind from the pandemic and believe that our extensive global business and low risk of magnitude effects in ads will propel us. In retrospect, I see great potential in investing ahead of my income growth,” said one.
That’s why the company is selecting about 6% of its global workforce, without any specific number of job losses, he added. Spotify revealed in its latest annual report that it had approximately 6,600 employees, which means that 400 jobs are being laid off.
One said, “I take full responsibility for the actions that see us here today.”
Systematic says that after years of rapid growth, the tech authority is being forced to lay off jobs in preparation for an economic downturn, which is likely to reduce demand for their software, products and services and reduce advertising spending.
Just last week, Google announced it was laying off 12,000 jobs, while Microsoft said it would lay off 10,000 employees, totaling at least 48,000 jobs announced by Big Tech applicants alone.
In early trading, Spotify shares rose 4.2% to $102.01.