San Francisco Chronicle
Spotify trimming 600 employees
Music streaming service Spotify said Monday it’s cutting 6% of its global workforce, or about 600 jobs, becoming yet another tech company forced to rethink its pandemic-era expansion as the economic outlook weakens.
CEO Daniel Ek announced the restructuring in a message to employees that was also posted online.
Stockholm-based Spotify had benefited from pandemic lockdowns because more people had sought out entertainment when they were stuck at home. Ek indicated that the company’s business model, which had long focused on growth, had to evolve.
The company’s operating costs last year grew at double its revenue growth, a gap that would be “unsustainable longterm” in any economic climate, but even more difficult to close with “a challenging macro environment,” he said.
He said that’s why the company is cutting its global workforce by about 6%. Ek didn’t give an actual number of job losses but a company spokesperson said it’s 600, based on 9,808 employees listed in its latest quarterly report.