On Monday (January 23), Spotify CEO Daniel Ek disclosed in a memo to employees that the company would reduce its global workforce by 6%.
Ek wrote that “like many other leaders,” he was “hoping to sustain the headwinds from the pandemic and believes our broad global business and lower risk than before.” The impact of deceleration advertising will protect us.”
He added: “Looking back, I was too ambitious to invest before our revenue growth. And for this reason, today, we are reducing our headcount by about 6% across the company. I take full responsibility for the moves that brought us here today.”
The company’s share price jumped 2.1% following the announcement.
News of the layoffs came three months after 38 podcasters lost their jobs was cut at SPOT, in early October, across the company’s Gimlet and Parcast studios.
In SPOT .’s Q3 earnings Notification, 25, the company announced that it was reducing its hiring forecast for the remainder of 2022 and planned to “slowly increase headcount by 2023,” citing the “environment macroeconomic uncertainty”.
In addition to the now-confirmed layoffs of more than 500 employees, it looks like Spotify has also implemented an immediate hiring freeze, wiping out all positions, except for the interns. official job board.
Using the reliable ‘Wayback Machine’, we can see that Spotify has recruiting for a total of 98 roles globally as of January 14, 2023, including 25 in New York, 15 in Los Angeles and 12 in London.
Back in June 2022, SPOT was 541 vacancies listed for its company worldwide, including 278 in New York and 79 in Stockholm
Now, there are only 21 roles advertisement at companies around the world, and all are Summer internships.
Ek also announced an organizational restructuring this week, Alex Norström, now Freemium Sales Director, and Gustav Söderström, now Research & Development Director, each taking on additional responsibilities and was appointed as Co-Chairman of the company.
Dawn Ostroff, Director of Content & Advertising Sales, is leaving the company.
“In an effort to improve efficiency, control costs, and accelerate decision-making, I have decided to restructure our organization.”
Daniel Ek
Ek added: “While we have made a lot of progress in improving speed over the past few years, we haven’t focused much on improving efficiency. We still spend too much time synchronizing slightly different strategies, which slows us down.
“And in a challenging economic environment, efficiency becomes even more important. So, in an effort to improve efficiency, control costs, and accelerate decision-making, I have decided to restructure our organization.
Spotify’s job cuts are part of a broader trend of layoffs in the tech sector and parts of the music business.
In August, Spotify’s rival and music streaming platform sound cloud start the process reduce its own global workforce about 20%
Also in August, debt collection association based in the US body mass index (Broadcast Music, Inc) has been reported as lay off “just under 10%” of its total workforce.
Several silicon valley giants have also cut back their workforces in recent months.
On Friday, Alphabet, the parent company, will Google to be disclosure will cut 12,000 roles (about 6% of the workforce).
Last week also saw Microsoft Notification 10,000 jobs were cut.
While, Facebook Mom meta announced 11,000 jobs cut in November and Amazon announced 18,000 cuts in January.
Layoffs as a cost-saving measure are also taking place in industries outside of technology, with Financial Times report at the end of the week that the banking industry is bracing for ‘the deepest job cuts since the financial crisis’, with the likes of ‘Credit Suisse, Goldman book and Morgan Stanley laid off employees’.
Spotify report that it added 7 million won net Premium to its user base in Q3 2022, bringing total global paid viewers 195 million won.
Financially, Spotify has created 3.036 billion euros ($3.06 billion) in quarterly revenue in the third quarter, up +12% annually in fixed currency. Subscribers/Premium revenue is considered at €2.651 billion ($2.70 billion) in the third quarter, increased +13% annually in fixed currency.
Global Music Business
