Spotify latest tech company to cut jobs, axes 6% of workforce

Spotify reported in its newest annual report that it had about 6,600 workers, which means that 400 jobs are being axed.(MGN)

LONDON (AP) — Music streaming service Spotify mentioned Monday it’s slicing 6% of its world workforce, changing into yet one more tech firm resorting to layoffs because the post-pandemic financial outlook weakens.

CEO Daniel Ek introduced the restructuring in a message to workers that was additionally posted on-line.

As a part of the revamp involving a administration reshuffle, “and to convey our prices extra in line, we’ve made the troublesome however crucial resolution to scale back our variety of workers,” Ek wrote.

Massive tech corporations like Amazon, Microsoft and Google introduced tens of hundreds of job cuts this month because the financial growth that the business rode in the course of the COVID-19 pandemic waned.

Ek mentioned Stockholm-based Spotify was no completely different. The corporate’s working prices final yr had been double its income progress, a niche that may be “unsustainable long-term” in any financial local weather, however much more troublesome to shut with “a difficult macro surroundings,” he mentioned.

Spotify had benefited from pandemic lockdowns as a result of extra individuals had sought out leisure once they stayed house.

“I hoped to maintain the robust tailwinds from the pandemic and believed that our broad world enterprise and decrease danger to the influence of a slowdown in adverts would insulate us. In hindsight, I used to be too formidable in investing forward of our income progress,” Ek mentioned.

He mentioned that’s why the corporate is slicing its world workforce by about 6%, with out giving a particular variety of job losses. Spotify reported in its newest annual report that it had about 6,600 workers, which means that 400 jobs are being axed.

“I take full accountability for the strikes that acquired us right here immediately,” Ek mentioned.