Spotify Announces , Massive Layoff.
'Gizmodo' reports that Spotify has announced sweeping staff cuts aimed at cutting global headcount by around 17%.
The 17% staff reduction is estimated to impact almost 1,600 Spotify staff members from across the world.
CEO Daniel Ek blamed the layoffs on faltering economic growth, specifically how , “capital has become more expensive.” .
According to Ek, early in the pandemic, the company hired an increased number of staff in order to take advantage of "lower-cost capital.".
According to Ek, early in the pandemic, the company hired an increased number of staff in order to take advantage of "lower-cost capital.".
In Spotify's most recent quarterly earnings report, the company saw big increases in total user numbers and an 11% increase in total revenue compared to 2022.
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Spotify staffers impacted by the layoffs will reportedly receive an average of five months severance pay, along with healthcare coverage over the same period.
Earlier this year, Spotify already went through two rounds of layoffs, including a 6% staff reduction in January and another wave of 200 staffers in June.
Meanwhile, the cost of Spotify's ad-free subscription plans has increased over the last few months.
'Gizmodo' reports that the news comes amid a wave of companies firing big chunks of their staff in 2022 and 2023.
Over the past few months alone, Amazon and LinkedIn were among companies to have announced sizable layoffs that have impacted hundreds of staff.
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Over the past few months alone, Amazon and LinkedIn were among companies to have announced sizable layoffs that have impacted hundreds of staff.
