Spotify plans to cut 6% of its workforce as part of a business overhaul, becoming the latest tech group to lay off employees in a bid to reverse massive hiring sprees caused by the pandemic. cause.
The music streaming service estimates it will incur between €35 million and €45 million in severance-related fees for employees who will lose their jobs. Spotify reported 6,617 employees at the end of fiscal 2021.
Alex Norström, director of freemium business, and Gustav Söderström, director of research and development, will become co-chairs as part of a restructuring process at the top of the business.
Dawn Ostroff, director of the advertising and content business, will leave the team, temporarily taking on an advisory role, Spotify said in a statement on Monday. Ostroff has helped expand Spotify’s podcast content 40 times, the company said.
Chief Executive Officer Daniel Ek told employees that the moves are part of an effort to drive more efficiency, control costs and accelerate decision-making.
“I expect to be able to sustain strong headwinds from the pandemic and believe that our broader global business and lower risk to the impact of the advertising slowdown,” said Ek. The fox will protect us,” Ek said.
“Looking back, I was too ambitious to invest before our revenue growth,” he added.
Other tech groups cutting staff include Microsoft, which last week said it would 10,000 jobs cutor 5% of its workforce, by the end of March, to promote cost reductions.