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Spotify to cut 6% of workforce

by SuperiorInvest

Spotify (POINT) is cutting 6% of its workforce amid falling spending on the music streaming platform, joining a number of tech companies pulling back on hiring in the pandemic era.

Key things

  • Music streaming service Spotify has announced that it will lay off 6% of its workforce, or about 600 people.
  • Consumer and advertiser demand for Spotify has shrunk in a cooling economy.
  • The firm joins Alphabet Inc., Amazon.com Inc. and Meta Platforms in downsizing after a hiring frenzy at the start of the pandemic.

Three years after Covid drove consumers to online and streaming services, Spotify said a cooling economy and lackluster demand from consumers and advertisers prompted the cuts earlier this week. Spotify is joining Google parent Alphabet Inc. (GOOG), Meta Platforms Inc. (META), Amazon.com Inc. (AMZN), a other tech companies in announcing widespread layoffs.

The Swedish company employs more than half of its 9,800 employees in the US. The layoffs will affect about 600 employees, CEO Daniel Ek said in a Jan. 23 post. At the same time, Spotify’s head of content, Dawn Ostroff, will leave. company after growing its podcast content 40-fold over the past five years.

Shares of Spotify rose more than 3% in early trading on January 23rd.

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