The multimedia services company announced on Monday that it would cut about 600 jobs, joining a wave of layoffs from other companies such as Amazon, Microsoft and Alphabet In; actions that were taken in anticipation of a possible recession.
This staff cut at Spotify means up to 6% of its workforce, out of 9,800 employees on the payroll. CEO Daniel Elk recently said that “We’ve put in a lot of effort over the past few months to keep costs under control, but it’s just not enough” and assured that the company will bear the associated costs of nearly $50 million.
After two years caused by the effects of the pandemic and aggressive collective bargaining, The tech industry is currently experiencing one of the biggest recessions in history.. In addition, Elk confirmed that the company’s expenses more than doubled during this time.
Spotify invested large amounts of money in the podcast business, which at that time was the most attractive to its customers and advertisers. “I was too ambitious to invest before our revenue growth,” added Daniel.
In previous years, Spotify has raised its shares significantly, however collapse of 66% of them, this has resulted in job cuts, and it is now reeling from an attempt to cut costs and adapt to other economic prospects.
At the beginning of 2023, large companies announced layoffs, the figure is approaching 40,000 workers. The first one was Amazon, which cut 18,000 positions 6% of its labor force; followed by Microsoft over 10,000 employees they will say goodbye to the corporation, which is equivalent to 5% of their entire wages, and finally Google about 12,000 employees 6% of all staff.
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Source: La Opinion
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