Spotify’s revenue slow down will lead to 600 job losses, as tech giant becomes the latest to cull staff
Spotify will be cutting its global workforce by nearly six per cent with around 600 people expected to lose their jobs.
The music streaming platform has joined fellow tech giants including Amazon, Google, Meta and Twitter in laying off staff, with tens-of-thousands of workers being laid off in recent weeks.
Last November Meta, the owner of Facebook, Instagram and WhatsApp announced it was sacking 13 per cent of its workforce, or 11,000 staff, worldwide.
Earlier this month Google’s parent firm Alphabet said it was scrapping 12,000 jobs with Microsoft announcing a cull of 10,000 staff.
Amazon is also cutting its workforce by an estimated 18,000 according to Reuters. It is not known exactly how many Twitter staff have lost their jobs.
In a filing, Spotify Technology SA, which scaled back hiring last year, disclosed to the Securities and Exchange Commission it was reducing its workforce by about six per cent.
Although it did not disclose the exact number of job losses, Spotify is believed to employ around 9,800 staff.
Bloomberg had reported that Spotify was planning to let go staff after its revenue growth had slowed down, and that the company’s chief content and advertising business officer will also be leaving.
Daniel Ek, CEO of Spotify, said he had been too ambitious in investing ahead of the company’s revenue growth, saying: “Like many other leaders, I hoped to sustain the strong tailwinds from the pandemic and believed that our broad global business and lower risk to the impact of a slowdown in ads would insulate us.”
” I take full accountability for the moves that got us here today,” he added.
Morning Wire has reached out to Spotify for comment.