CEO Daniel Ek announces that Spotify is about to eliminate 6% of employees of the entire workforce, will be let go to improve productivity.
In the midst of worsening economic downturn, Swedish streaming music company Spotify is anticipated to eliminate employees this week, according to the press announcement on Monday. At this time, according to citations by Bloomberg, the staff who will be dismissed is unknown. As of the most recent report, the company employed over 9,800 people. The report was not immediately addressed by Spotify.
As per reports, as portion of recent market and cutbacks, Spotify shuttered 11 original podcasts broadcast in-house in October of last year. Less than 5% of the company’s initial podcast staff members were either let go or transferred to new shows. How to Save a Planet, Crime Show, and Medical Murders were three of the podcasts that internal studios Gimlet and Par cast cancelled.
As technology companies manoeuvre throughout unstable global conditions, the first claims that Spotify hiring freezes by about 25% surfaced in June. Earlier, Spotify withdrew its “Spotify Stations” mobile playing app. Spotify’s chief financial officer, Paul Vogel, stated that “We are well aware of the mounting uncertainties over the globalisation” at a research note last year. In 2022, more than 433 million monthly registered users (MAUs) on the Swedish streaming music service.
Spotify CEO Daniel Ek’s Press Release – Laying off 6% Employees
“In hindsight, I was excessively ambitious in spending advance of our profit growth.“
CEO Daniel Ek
In the statement, he added the following: “Across the board, we are laying off around 6% of our workers. I accept full responsibility for the actions that led to this situation. As many business executives, I planned to capitalise on the pandemic’s positive momentum. I also thought that we would be protected by the size of our global clientele and the decreased likelihood of a slowdown in advertising.”
Ek outlined what would occur after Spotify announced plans to fire around 6% of its workforce in the message, which was posted on the company’s website on Monday.
Significant in Layoffs
Any retiring employee would receive payment for earned and unused vacation time, and the company would stay to provide health insurance throughout the layoff period.
Dawn Ostroff, Spotify’s chief content and business officer, has also opted to leave the company as a result of the dismissal. She was acknowledged for leaving a significant effect on the music business as a whole as well as on Spotify throughout the press release.
Spotify’s announcement comes after those made last week by Microsoft and Alphabet, which both reported losses. According to BBC, Microsoft and Alphabet, which owns Google, both announced job losses of up to 10,000 people each.
