Audio streaming platform Spotify is laying off 6% of its workforce, or about 600 employees, joining a growing number of big tech companies cutting costs amid ongoing concerns about the global economy.
“As you know, we have made considerable efforts to control costs over the past few months, but it has not been enough,” Spotify CEO Daniel Ek said in a statement. Notice to employees on Monday. As of the end of the third quarter, the company had more than 9,800 employees, According to regulatory documents.
The music and podcast platform is the latest tech company to cut jobs to rein in spending amid looming recession fears. Last week, Google parent Alphabet cut 12,000 jobs and Microsoft cut 10,000. Media companies have also been laying off workers. Vox Media cut 7% of its workforce on Friday, and The Washington Post told staff in December that the company would cut staff.
Mr. Ek said in the report that Stockholm-based Spotify’s layoffs were largely due to macroeconomic challenges. “Until our revenues grow, my investments are too ambitious,” he wrote. In addition to career counseling services, the company also provides employees with about five months of severance pay and health care. In a statement, the company said Spotify will cover severance payments of between 35 million and 45 million euros. Filing with the Securities and Exchange Commission.
Mr. Ek also announced some changes in Spotify’s executive ranks as part of an effort to “restructure our organization.” Dawn Ostroff, the company’s chief content and advertising officer, is leaving. A seasoned TV and video executive, she was hired in 2018 when Spotify was looking for ways to expand its offerings beyond music.
As part of the restructuring, Chief Commercial Officer Alex Norström and Chief Research and Development Officer Gustav Söderström will serve as Co-Presidents.