Spotify trims 6% of its workforce

As businesses get ready for a potential downturn, streaming music firm Spotify Technology SA announced on Monday that it expects to lay off 6% of its personnel. This will add to a wave of layoffs in the technology industry.

Following two years of pandemic-driven expansion and strong hiring, tech firms are now experiencing a decrease in demand. The result has been the loss of millions of employees at companies like Meta Platforms Inc. and Microsoft Corp.As quick rises in interest rates and the effects of the Russia-Ukraine crisis burden the budget, Spotify, headquartered in Sweden, has already seen marketers cut down on spending, following a pattern witnessed at Meta and Google parent Alphabet Inc.

The business also announced that Dawn Ostroff, its chief content and advertising company director, will leave as part of a larger restructuring. As of September 30, Spotify employed roughly 9,800 full-time employees. The company stated that it anticipates redundancy pay costs to range from 35 million euros ($38.06 million) to 45 million euros. In early trading, the company’s shares increased by 3.5%. After two years of pandemic-driven expansion during which they had vigorously hired, digital businesses are currently experiencing a slump in demand, which is why Spotify decided. As a result, companies like Meta Technologies turned to Microsoft. to cut a large number of jobs.

As the economy is pressured by swift interest rate increases and the effects of the Russia-Ukraine crisis, Spotify, headquartered in Sweden, has seen advertisers reduce their spending, following a trend witnessed at Meta and Google parent Alphabet. In October, the business announced that it would reduce recruiting until the end of the year and into 2023. In a bad year for tech companies (2022), it stocks more than half.