Following the tech giants, Spotify announced the layoff of approximately 600 employees – which corresponds to 6% of the state.
Headquartered in Sweden, the streaming platform has about 9800 professionals, 5400 in the US and 1900 in the rest of the world combined, according to the company’s LinkedIn page.
And, in the fashion of big tech companies, the information was emailed to employees signed by CEO Daniel Eck. The note was also issued as an official press release.
Spotify’s CEO said the company regrets having to part ways with so many employees. Despite this, the Swedish music streaming service’s priority will continue to be growing subscribers and expanding the streaming service’s geographic footprint.
Also, according to the CEO, the reason for the reduction in staff is the macroeconomic scenario, which directly affected the number of subscribers and limited revenue from advertisers.
Ek said that last year, Spotify’s operating cost growth doubled its revenue growth.
Last October – the streaming platform’s latest balance sheet is in the third quarter of 2022 – the company reported a 21% increase in revenue to €3 billion, driven by an increase in paid subscribers and a 19% increase in ad revenue, mainly driven by the format podcasts.
At the time, the justification was an increase in the number of employees and an increase in advertising costs. However, the loss tripled compared to the previous quarter and amounted to 228 million euros.
According to media reports, in January 2023 alone, around 55324 specialists from technology companies worldwide suffered from mass layoffs.
So, even the giant of the world music industry was forced to carry out a partial lockout. Let’s hope that in the future Spotify will continue its triumphal march in the world of music.
