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Spotify To Start Laying Off Staff This Week: Report

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Spotify

Spotify

Spotify Technology SA is planning layoffs as soon as this week, according to people knowledgeable with the plans, entering a slew of technology companies from Amazon.com Inc. to Meta Platforms Inc. in reporting job cuts to lower costs. The people must specify the number of positions to be eliminated. In October, Spotify laid off 38 staff from its Gimlet Media and Parcast podcast studios. According to its third-quarter earnings statement, the music-streaming giant has about 9,800 employees.

Tech firms added to their headcounts during the pandemic but were forced to make reductions in reaction to reduced advertising revenue and a shaky economic outlook. Amazon.com, Meta, and Microsoft Corp. were among the most prominent companies newly announcing staff reductions. When Google parent Alphabet Inc. said Friday, it would cut about 12,000 jobs, more than 6% of its global workforce.

A Spotify spokesperson denied commenting on the upcoming cuts. The company made a considerable commitment to podcasting starting in 2019. It spent over a billion dollars acquiring podcast networks, creating software, hosting assistance, and the rights to famous plays like The Joe Rogan Experience and Armchair Expert.

Still, the assets have tested investors’ patience. Shares fell 66% last year as investors questioned when they’d begin seeing recoveries. Spotify’s executives said in June its podcast firm would become beneficial in the next one to two years.

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