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Music streaming agency Spotify Technology SA mentioned on Monday it plans to reduce 6% of its workforce, or roughly 600 jobs, including to a glut of layoffs within the expertise sector as corporations put together for a potential recession.
The firm additionally mentioned its chief content and promoting enterprise officer, Dawn Ostroff, will depart as half of a broader reorganization.
Spotify, which had about 9,800 full-time workers as of September 30, mentioned it expects to incur about 35 million euros ($38.06 million) to 45 million euros in severance-associated fees.
Shares within the firm rose 3.5% in premarket buying and selling.
Spotify’s transfer comes at a time when tech corporations are going through a requirement downturn after two years of pandemic-pushed development throughout which they’d employed aggressively. That has led the likes of Meta Platforms Inc to Microsoft Corp to shed hundreds of jobs.
Sweden-based Spotify has seen advertisers pull again on spending, mirroring a pattern seen at Meta and Google father or mother Alphabet, as speedy rate of interest hikes and the fallout from the Russia-Ukraine battle strain the economic system.
The firm had mentioned in October that it could decelerate hiring for the remaining of the yr and into 2023. Its shares greater than halved in a dismal 2022 for tech shares.
The firm additionally mentioned its chief content and promoting enterprise officer, Dawn Ostroff, will depart as half of a broader reorganization.
Spotify, which had about 9,800 full-time workers as of September 30, mentioned it expects to incur about 35 million euros ($38.06 million) to 45 million euros in severance-associated fees.
Shares within the firm rose 3.5% in premarket buying and selling.
Spotify’s transfer comes at a time when tech corporations are going through a requirement downturn after two years of pandemic-pushed development throughout which they’d employed aggressively. That has led the likes of Meta Platforms Inc to Microsoft Corp to shed hundreds of jobs.
Sweden-based Spotify has seen advertisers pull again on spending, mirroring a pattern seen at Meta and Google father or mother Alphabet, as speedy rate of interest hikes and the fallout from the Russia-Ukraine battle strain the economic system.
The firm had mentioned in October that it could decelerate hiring for the remaining of the yr and into 2023. Its shares greater than halved in a dismal 2022 for tech shares.
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