Spotify Layoffs Expected as Soon as This Week
Written by djfrosty on January 23, 2023
Spotify is set to have layoffs as soon as this week as the company moves forward with plans to reduce operational expenses, according to a person familiar with the matter.
The layoffs are expected to be more broad than a previous round of cuts in October, which impacted staff members working on canceled shows from in-house podcast studios Gimlet and Parcast.
A representative for Spotify declined to comment.
Spotify executives have previously signaled plans to reduce headcount-related expenses, with CEO Daniel Ek telling staff last June that the company would reduce its hiring growth by 25 percent and “be a bit more prudent with the absolute level of new hires over the next few quarters.” Paul Vogel, the company’s chief financial officer, also pointed to “increasing uncertainty regarding the global economy” at Spotify’s investor day in June as a reason for “evaluating [Spotify’s] headcount growth in the near term.”
Though the exact number of layoffs — first reported by Bloomberg — is not immediately clear, other tech companies like Amazon, Microsoft and Meta have each announced major rounds of layoffs impacting thousands of employees in recent months. The most recent layoff announcement came from Google parent company Alphabet, which is set to reduce its staff by 6 percent, which represents around 12,000 employees.
As of the end of the third quarter, Spotify employed around 9,800 people. The audio company brought in €3.04 billion in revenue and added 195 million paid subscribers during the third quarter. At the time, Ek said the economic downturn had not had a “material impact” on the company’s business but that Spotify would be “more selective” with its “overall spending.”
Spotify will report its fourth-quarter earnings on Jan. 31 before the market opens.
This article originally appeared in THR.com.