Spotify to Cut 6% of Staff Amidst Layoffs Affecting All Business Units

The music streaming company Spotify revealed Monday that it is laying off 6% of its global personnel as it struggles to survive in a bleak economic climate where both customers and marketers are cutting back on their spending.

6% of Spotify’s Employees Will Be Laid Off in the Next Few Weeks

Around 600 staff will be impacted by the changes at Spotify, which employs a total of roughly 9,800 people. The company employs 5,400 employees in the United States and 1,900 in Sweden, according to its LinkedIn page.

Spotify, a Swedish company with a New York Stock Exchange listing, informed personnel of the layoffs in an internal memo on Monday.

Daniel Ek, CEO of Spotify, stated in the message that one-on-one discussions with impacted workers will start over the following several hours and were made public on the business’ website.

Spotify to Cut 6% of Staff Amidst Layoffs Affecting All Business Units

Like many other leaders, I hoped to continue in office.
Like many other corporate executives, Ek remarked, “I hoped to sustain the strong tailwinds from the epidemic and assumed that our vast global business and lesser exposure to the impact of a downturn in advertising would cushion us.

“In retrospect, I was overly ambitious in making investments before our revenue growth. And as a result, we are presently cutting our whole labour base by around 6%.

Ek stated that he accepts “all accountability for the moves that lead us here today” in the email to workers.

Employees who are laid off will receive ongoing health insurance coverage and an average severance package of five months, according to Ek. Additionally, workers whose immigration status is related to their employment will have access to immigration support.

Dawn Ostroff, the head of Spotify’s
The company’s chief of content, Dawn Ostroff, is also going. Former Conde Nast Entertainment executive Ostroff joined Spotify in 2018 to assist the firm expand its nascent podcasting and advertising businesses.

Ostroff signed Barack and Michelle Obama’s production business Higher Ground Productions during her stint at Spotify so that they would create exclusive podcasts for the platform. Additionally, she was in charge of negotiating exclusive podcasting agreements with Kim Kardashian, Prince Harry, and Meghan Markle. She also oversaw the negotiation to acquire exclusive rights to the Joe Rogan programme.

Spotify CEO Daniel Ek said, “thanks to her work, Spotify grew our podcast content by 40x, generated substantial innovation in the format, and became the top music and podcast service in several areas.”
Google, the newest well-known tech brand to announce layoffs, said it will eliminate 12,000 jobs on Friday. In the meantime, layoffs have also been announced by Amazon and Microsoft.

Tech companies will pay a price in 2022 as investors lost interest in shares as the US Federal Reserve raised interest rates.

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