Quoting a need of improve efficiency, the Swedish music-streaming giant said that it would lay off around 600 employees
The world’s biggest music streaming platform Spotify just announced that it is laying off around 6% of its 10,000 employee workforce.
“In hindsight, I was too ambitious in investing ahead of our revenue growth,” said Spotify CEO Daniel Ek while announcing the layoffs.
Despite its significant user base, Spotify has never recorded a full year of net profit, and now following the tech crash, the company has added itself into the list of companies that were a part in the tech layoffs.
Both Google parent Alphabet and Microsoft also made similar layoff announcements last week. Google said it would lay off around 12,000 jobs while Microsoft said it would layoff around 10,000 employees.
According to Spotify, this layoff is a part of a company restructure, since major positions such as chief content and advertising business officer, Dawn Ostroff was also let go.
Right before entering 2023, Spotify announced that it will slow down its hiring process in the following year, but is now laying off employees.
This pattern of slowing down hiring and then laying off employees is somewhat similar in almost all tech companies that overhired during the pandemic.
Announcing the layoffs, Spotify CEO Daniel Ek wrote that “I take full accountability for the moves that got us here today.”