HomeWinBuzzer NewsSpotify to Cut 6% of Its Workforce, Joining the Big Tech Job...

Spotify to Cut 6% of Its Workforce, Joining the Big Tech Job Cull

Spotify says its costs are out of control and it needs to release 6 percent of its global workforce to reign in expenditure.

-

In recent weeks, , , , , and Twitter have announced major , totaling thousands across each company. As the economy continues to slow, major tech companies are reacting by cutting down workforces. is joining the list of companies taking this approach and says it will release 6% of its global employees.

A post on the Spotify website from CEO Daniel Ek confirms the company will cut potentially thousands of jobs. Ek explains that this decision is necessary because the companies operational expenditure is outpacing revenue growth by 100%.

“That would have been unsustainable long-term in any climate, but with a challenging macro environment, it would be even more difficult to close the gap,” he says.

Ek – which has been linked with multi-billion-dollar purchases of sports teams, by the way – says Spotify made efforts to reign in costs before reaching this decision.

“Like many other leaders, I hoped to sustain the strong tailwinds from the pandemic and believed that our broad global business and lower risk to the impact of a slowdown in ads would insulate us. In hindsight, I was too ambitious in investing ahead of our revenue growth.”

The company will give departing employees five months of severance pay, healthcare benefits, and immigration support. Outplacement services for two months will also be available.

Tech Exodus

Earlier this month, Microsoft brushed off reports of major job cuts as “rumor” before then confirming it will slash over 10,000 employees over the next three months. Google joined in last week by confirming it will cut 12,000 jobs. Both layoff cuts will account for 5% or more of Google and Microsoft's global workforce.

Amazon is also releasing around 20,000 employees, while Twitter and Facebook have also announced major reductions.

Tip of the day: Did you know that your data and privacy might be at risk if you run Windows without encryption? A bootable USB with a live- distribution is often just enough to gain access to all of your files.

If you want to change that, check out our detailed BitLocker guide where we show you how to turn on encryption for your system disk or any other drive you might be using in your computer.

SourceSpotify
Luke Jones
Luke Jones
Luke has been writing about all things tech for more than five years. He is following Microsoft closely to bring you the latest news about Windows, Office, Azure, Skype, HoloLens and all the rest of their products.

Recent News

Mastodon