Spotify will lay off some 6% of its 6,600-strong workforce because the streaming giant is the most recent tech firm to undertake cost-cutting measures to address a struggling economy.
The Sweden-based company will shed some 400 employees who will likely be paid an aggregate of between $38 million and $48 million in severance, in line with Bloomberg News.
Spotify also announced the departure of Dawn Ostroff, the corporate’s chief content and promoting business officer. Ostroff leaves amid a company-wide reorganization.
A Spotify spokesperson referred The Post to an announcement by company CEO Daniel Ek, who said that the firm was searching for to “improve efficiency.”
“As a part of this effort, and to bring our costs more in line, we’ve made the difficult but mandatory decision to scale back our variety of employees,” Ek said.
The CEO said that management will initiate “one-on-one conversations” with “all impacted employees.”
“As you’re well aware, over the previous few months we’ve made a substantial effort to rein-in costs, nevertheless it simply hasn’t been enough,” Ek said.
“So while it is obvious this path is the proper one for Spotify, it doesn’t make it any easier — especially as we predict in regards to the many contributions these colleagues have made.”
Terminated employees will receive roughly five months severance, accrued and unused paid day without work, and medical health insurance throughout the severance period, in line with Ek.
Spotify, a publicly traded company listed on the Latest York Stock Exchange, has seen its share price dip from an all-time high of $364 within the winter of 2021 to simply $98 as of early Monday morning.
Shares of Spotify are up by greater than 4.6% in pre-market trading as of 8 a.m. Eastern time on Monday.
The corporate is scheduled to announce its fourth quarter earnings report next week.
Spotify missed its earnings per share targets in each the second and third quarter of this fiscal 12 months, though it barely beat revenue estimates because it saw a growth within the variety of paid subscribers.
As of October, the streaming service reported that it had 456 million monthly lively users for the third quarter — a year-over-year increase of 20%.
Spotify also counted 195 million paid subscribers, which is up 13% from the identical period last 12 months.
The announced layoffs come days after Google’s parent company, Alphabet, said that it will be culling some 12,000 jobs — or 6% of its workforce — from its payrolls. The search engine employed some 187,000 people worldwide as of late last 12 months.
Last week, Amazon began notifying its employees that it will be reducing headcount by 18,000 staff.
Microsoft also said that it will be downsizing its workforce by some 5% by shedding 10,000 people.
Within the last 12 months, an estimated 70,000 tech staff have been laid off from firms including Tesla, Robinhood, Snap, Netflix, Stripe, Shopify, Coinbase, Salesforce, Twitter, and Meta.
Spotify will lay off some 6% of its 6,600-strong workforce because the streaming giant is the most recent tech firm to undertake cost-cutting measures to address a struggling economy.
The Sweden-based company will shed some 400 employees who will likely be paid an aggregate of between $38 million and $48 million in severance, in line with Bloomberg News.
Spotify also announced the departure of Dawn Ostroff, the corporate’s chief content and promoting business officer. Ostroff leaves amid a company-wide reorganization.
A Spotify spokesperson referred The Post to an announcement by company CEO Daniel Ek, who said that the firm was searching for to “improve efficiency.”
“As a part of this effort, and to bring our costs more in line, we’ve made the difficult but mandatory decision to scale back our variety of employees,” Ek said.
The CEO said that management will initiate “one-on-one conversations” with “all impacted employees.”
“As you’re well aware, over the previous few months we’ve made a substantial effort to rein-in costs, nevertheless it simply hasn’t been enough,” Ek said.
“So while it is obvious this path is the proper one for Spotify, it doesn’t make it any easier — especially as we predict in regards to the many contributions these colleagues have made.”
Terminated employees will receive roughly five months severance, accrued and unused paid day without work, and medical health insurance throughout the severance period, in line with Ek.
Spotify, a publicly traded company listed on the Latest York Stock Exchange, has seen its share price dip from an all-time high of $364 within the winter of 2021 to simply $98 as of early Monday morning.
Shares of Spotify are up by greater than 4.6% in pre-market trading as of 8 a.m. Eastern time on Monday.
The corporate is scheduled to announce its fourth quarter earnings report next week.
Spotify missed its earnings per share targets in each the second and third quarter of this fiscal 12 months, though it barely beat revenue estimates because it saw a growth within the variety of paid subscribers.
As of October, the streaming service reported that it had 456 million monthly lively users for the third quarter — a year-over-year increase of 20%.
Spotify also counted 195 million paid subscribers, which is up 13% from the identical period last 12 months.
The announced layoffs come days after Google’s parent company, Alphabet, said that it will be culling some 12,000 jobs — or 6% of its workforce — from its payrolls. The search engine employed some 187,000 people worldwide as of late last 12 months.
Last week, Amazon began notifying its employees that it will be reducing headcount by 18,000 staff.
Microsoft also said that it will be downsizing its workforce by some 5% by shedding 10,000 people.
Within the last 12 months, an estimated 70,000 tech staff have been laid off from firms including Tesla, Robinhood, Snap, Netflix, Stripe, Shopify, Coinbase, Salesforce, Twitter, and Meta.
