Spotify To Announce Massive Layoff of Employees
According to news gathered, audio giant Spotify is to announce a massive layoff of employees in the coming week that will affect many people.
A Swedish audio streaming company is said to be considering layoffs, following similar moves by tech giants such as Apple, Google, Microsoft, and Amazon.
According to Bloomberg News, Spotify Technology, the Swedish audio streaming giant, is planning to announce layoffs as soon as this week, adding to an industry-wide trend that has resulted in thousands of job cuts at tech companies such as Apple, Google, Microsoft, and Amazon.
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The specific number of job cuts under consideration at Spotify is not currently known. In October, Spotify, which has a workforce of around 9,800, let go of 38 employees from its podcast studios, Gimlet Media and Parcast.
Spotify’s share price fell 66% last year, and the company has not yet commented on the report. This week as Spotify to announce massive layoff will affect the employees going home.
Tech firms have cut thousands of jobs in the past year as a result of slowing advertising revenues and economic concerns, with Google parent Alphabet, Microsoft, and Amazon all announcing layoffs in recent weeks.
Smaller tech companies such as UK-based cybersecurity firm Sophos and cryptocurrency players such as Coinbase have also announced job cuts affecting up to 20% of their workforces.
So far in 2023, more than 55,000 tech employees worldwide have been laid off, according to data from the website Layoffs.fyi.
“In a blog post announcing the layoff of 600 employees, Spotify CEO Daniel Ek stated that despite efforts to reduce costs, they were not enough.
He admitted to being too ambitious in investing before their revenue growth and acknowledged the need for the company’s business model to adapt.
The pandemic had at first increased the number of users for the Stockholm-based company, but their operating costs had grown more quickly than their revenue, primarily because they had increased investment in their podcast division, which is more appealing to advertisers.
Businesses reduced their ad spending on Spotify, similar to what was observed at Meta and Alphabet Inc., as the economy faced challenges from rising interest rates and the Russia-Ukraine war.
In response, Spotify is restructuring to reduce costs and adapt to the changing economic conditions.
The company announced that the head of content and advertising, Dawn Ostroff, is leaving after a four-year tenure, during which she helped develop Spotify’s podcast business and navigated backlash surrounding Joe Rogan’s show for spreading misinformation about COVID-19.
Alex Norström, head of the freemium business, and Gustav Söderström, head of research and development, will now serve as co-presidents.
Despite recent job cuts, many technology companies are still much larger than they were three years ago. According to its 2019 annual report, Spotify had 4,405 employees before the pandemic started.
As of September 30, the company had about 9,800 full-time employees. It was previously reported by Bloomberg News that the company was planning to announce layoffs.
SOURCE: ALJAZEERA.COM