Spotify is one of several tech businesses now undergoing massive layoffs. There will be layoffs of 6% of the whole worldwide staff at the Swedish music streaming behemoth.
CEO Daniel Ek of Spotify sent a statement to all staff members announcing the layoffs. The most recent financial report from Spotify indicates that the company employs about 9,800 people full-time, with layoffs affecting less than 600 of them.
Ek said that the layoffs were part of a larger effort to streamline operations, save expenses, and speed up decision-making in his company.
A quotation from Eck’s presentation may be seen in The Verge on January 24th, 2023.
“When I look back, I see how foolish it was to invest before boosting earnings. The decisions that have gotten us here are all my own “A statement he made.
Spotify will provide impacted workers with five months of severance compensation. In addition to the severance money, any accrued vacation time will be paid out and health insurance will be kept in effect.
Both upper-level management and normal staff at Spotify were let go. Spotify’s head of content and advertising, Dawn Ostroff, stated that the company and Eck were able to increase podcast content on Spotify by a factor of up to 40.
Though it offers the most music of any streaming service, Spotify cares more about expanding its user base than making money. To attract new listeners, Spotify has put a lot of resources into podcasts and audiobooks in recent years.
The most recent Spotify financial report shows that the service has 195 million paying customers and 456 million regular users. While 2.7 billion euros came from paid customers, advertising contributed another 385 million euros to Spotify’s total income of 3 billion euros in 2017.
Spotify’s layoffs come after several other tech businesses revealed similar plans. Google announced 12,000 layoffs earlier this week. Amazon, Meta, Twitter, and even Microsoft are among the other digital giants that have recently let off staff.