Spotify Technology SA is planning layoffs as soon as this week, according to people familiar with the plans, joining a slew of tech companies from Amazon.com Inc. to Meta Platforms Inc. in announcing job cuts to reduce costs.
The number of removed positions is not specified by the people. Spotify laid off 38 employees from podcast studios Gimlet Media and Parcast in October. The music streaming giant has about 9,800 employees, according to third-quarter earnings reports.
Tech companies added their headcount during the pandemic but were forced to make cuts due to falling ad revenue and an unstable economic outlook. Amazon.com, Meta and Microsoft Corp. is one of the biggest companies to announce recent layoffs, while Google’s parent company, Alphabet Inc. said on Friday that it would cut about 12,000 jobs, more than 6% of the global workforce.
A spokesperson for Spotify declined to comment on the upcoming cuts.
The company made a big commitment to podcasting starting in 2019. The company spent more than a billion dollars buying podcast networks, creation software, hosting services, and rights to popular shows like The Joe Rogan Experience and Armchair Expert.
However, the investments tested investors’ patience. Shares fell 66% last year as investors questioned when they would start to see returns. Spotify executives said in June that their podcast business will be profitable in the next one to two years.
(Except for the title, this story has not been edited by NDTV staff and is published from an aggregated feed.)
Featured video of the day
Gunman shot 10 people at event in California, killed himself while surrounded