Spotify announces that it will lay off hundreds of employees. Mostphotos
The Swedish music streaming service Spotify plans to lay off about six percent of its employees, reports the news agency Reuters.
Six percent of the employees would mean 600 employees. At the end of September, Spotify employed around 9,800 full-time employees.
– In retrospect, you can say that I was too ambitious to invest before our turnover grew. That’s why today we are reducing the number of employees by about six percent in the entire company, Spotify’s CEO Daniel Ek said on the company’s blog, according to AFP
According to Reuters, the company has calculated that it will pay 35–45 million euros in severance pay as a result of the layoffs. In October of last year, Spotify announced that it would cut back on recruiting new employees for the rest of the year and until 2023.
Spotify isn’t the first tech company to announce widespread layoffs. Previously, among others, Facebook’s parent company Meta and software giant Microsoft have announced the layoffs of tens of thousands of their employees.