Spotify to cut about 6% of jobs in latest tech layoffs

The music streaming giant has about 9,800 employees, according to its third-quarter earnings report. PHOTO: PEXELS

STOCKHOLM – Spotify Technology is planning to cut about 6 per cent of its employees, joining a slew of technology companies from to Facebook’s Meta Platforms in announcing job cuts to lower costs. 

The move was announced in a filing on Monday morning, confirming reports from over the weekend that there would be job cuts. The music streaming giant has about 9,800 employees, according to its third-quarter earnings report. 

Spotify laid off 38 staff from its Gimlet Media and Parcast podcast studios in October.

Tech companies added to their headcounts during the Covid-19 pandemic but were forced to make reductions in response to reduced advertising revenue and a shaky economic outlook., Meta and Microsoft were among the biggest companies to announce staff reductions recently, while Google parent Alphabet said on Friday it will cut about 12,000 jobs, more than 6 per cent of its global workforce.

Spotify said in the filing that Ms Dawn Ostroff, chief content and advertising business officer, will leave the company as part of a broader reorganisation. Mr Alex Norstrom, currently chief freemium business officer, and Mr Gustav Soderstrom, currently chief research and development officer, will each take on additional responsibilities as co-presidents of the company.

Spotify shares rose 3.9 per cent as at 7.15am in New York. The stock had lost 58 per cent of its value since the end of 2021.

The company made a massive commitment to podcasting beginning in 2019. It spent more than a billion dollars on acquiring podcast networks, creation software, a hosting service and the rights to popular shows such as The Joe Rogan Experience and Armchair Expert.

Still, the investments have tested investors’ patience. Spotify shares tumbled last year as investors questioned when they would begin seeing returns. BLOOMBERG

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