It was reported yesterday that Spotify is set to announce layoffs this week as a way to cut costs. Not long after that, the music and podcast streaming company officially confirmed that they were laying off some of their employees.
In a ___ The memo was posted on Spotify’s website., CEO Daniel Eck announced that the company would lay off about 6% of its workforce. According to Ek, they are making this decision because Spotify’s operational expenses have increased its revenue by 100%. “This would have been unsustainable long-term in any climate, but with a challenging macro-environment, closing the gap will be even more difficult,” he said.
The CEO also said that while the company had made considerable efforts to control costs, it was not enough.
“Like many other leaders, I expected to maintain strong tailwinds from the pandemic and believed that our broad global business and advertising would be less vulnerable to the impact of the slowdown impacting us. Revenue growth.”
Those receiving a pink slip will be entitled to five months of severance pay, immigration support, health care benefits, and two months of outplacement services. Spotify’s Human Resources Business Partner will also work with employees whose immigration status is related to their employment.
The announcement of Spotify’s layoffs follows a recent wave of layoffs in the technology industry. In November last year, Meta and Twitter let go of a significant number of employees. And just this month, Microsoft, Amazon, and Google announced major layoffs as a way to significantly cut costs.
