Spotify to trim 6 per cent of workforce

Spotify said it will incur about 35 million euros ($38.06 million) to 45 million euros in severance-related charges.

By: Reuters
Updated: January 23, 2023 06:04 PM IST

1 min read

Spotify | Spotify layoffs | Spotify job cut

Tech companies are facing a demand downturn after two years of pandemic-driven growth during which they had hired aggressively. (Image Source: Pixabay)

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Music streaming firm Spotify Technology SA plans to cut 6% of its workforce, the company said on Monday, a move that will add to a glut of layoffs in the technology sector as companies prepare for a possible recession.

Tech companies are facing a demand downturn after two years of pandemic-driven growth during which they had hired aggressively. That has led the likes of Meta Platforms Inc to Microsoft Corp to shed thousands of jobs.

Sweden-based Spotify has seen advertisers pull back on spending, mirroring a trend seen at Meta and Google parent Alphabet Inc, as rapid interest rate hikes and the fallout from the Russia-Ukraine war pressure the economy.

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Spotify said it will incur about 35 million euros ($38.06 million) to 45 million euros in severance-related charges.

The company said its chief content and advertising business officer Dawn Ostroff will also depart.

‘Spotify had about 9,800 full-time employees, as of Sept. 30.

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