Today, January 23, music streaming service Spotify announced on the reduction of 6% of employees. In total, the company employs 9.8 thousand people, that is, the reduction will affect just under 600 employees. In a statement, Spotify CEO Daniel Ek explained the need to improve efficiency and cut costs.
Abbreviations at Spotify are the latest move in the tech industry. Since last year, many companies in this field have been making cuts in the face of a difficult macroeconomic situation and a downturn in the online advertising market. Just last week, massive cuts were announced Alphabet (dismissed 12 thousand employees) and Microsoft (10 thousand). According to the service Layoffs.fyiwhich tracks cuts in this area, last year technology companies laid off a total of more than 150 thousand employees, and since the beginning of 2023, almost 56 thousand.
Spotify also announced management changes, with the departure of Don Ostroff, who was director of content and advertising. In addition, two new positions will appear in the company – a director of business and a director of products. These positions will be occupied by top managers of Spotify Alex Norstrom and Gustav Cederstrom. Spotify’s shares rose 4.5% after the announcement, with the company’s shares down 58% since the end of 2021.
