The wave of layoffs in the technology sector continues to claim new victims. If a few days ago we talked about the economic problems that Spotify was going through, despite its success, today it is known that the company will reduce its workforce this week, in order to carry out a cost reduction plan.
During the month of October, the company already carried out a series of layoffs, although they only affected workers from its internal podcast companies: Gimlet and Parcast. Now, according to The Hollywood Reporter, the reduction in staff would affect more people from different departments of Spotify.
More layoffs in the tech world
The situation does not exactly catch employees off guard. Spotify’s own executive director, Daniel Ek, told his workers in June that the company would reduce hiring by up to 25% and that “would be a little more prudent with the absolute level of new hires in the coming quarters”.
Spotify’s own CFO, Paul Vogel, cited “the growing uncertainty surrounding the global economy” as a major reason for “evaluating the company’s near-term headcount growth”. In addition to this serious global context, the particular circumstances of Spotify, which is struggling to make a profit after its large investment in podcasts (with big names such as Barack Obama or the Kardashian).
Spotify is the latest case of layoffs at a renowned technology company. Just last week, we learned that Microsoft carried out a downsizing that ended up leaving 10,000 people on the streets, and Alphabet, the parent company of Google, carried out a similar action, which led to the dismissal of 12,000 employees. Other large companies such as Meta or Amazon have also reduced their workforce in recent months.
With 9,800 employees worldwide (last quarter’s data), the amount of Spotify’s layoffs and the areas it will affect are unknown at the moment. Its CEO said the economic downturn has not yet had a “material impact” on the company, although he would be “more selective” with “overall spending”.