Spotify executives announced today (23) that they plan to lay off approximately 600 employees. This represents 6% of the company’s workforce and will include the departure of at least one of the most senior roles, with Dawn Ostroff, head of content, one of those leaving Spotify.
According to ReutersThe streaming music network had roughly 9,800 employees on September 30, 2022. To cut costs – without just cause – the layoffs would require around 35m to 45m euros in compensation for contract terminations.
But the measure is still seen as cost-effective for the company in the long run. Therefore, Spotify shares rose 3.5% earlier in the day.
Accelerated layoffs in technology
The layoffs on the streaming platform are one more case in many for the tech industry. The industry is currently facing a “backlash”: After growing rapidly during the pandemic, it no longer supports the thousands of employees hired during the boom.
Spotify is a relatively small company compared to giants like Google, Amazon and Microsoft. Together, these three companies are expected to put at least 40,000 people out of work in 2023.
Source: Tec Mundo