Spotify to trim 6 per cent of workforce, content head to depart

Music streaming agency Spotify Technology stated on Monday it plans to chop 6 per cent of its workforce, or roughly 600 jobs, including to a glut of layoffs within the know-how sector as firms put together for a attainable recession.

The firm additionally stated its chief content material and promoting business officer, Dawn Ostroff, will depart as a part of a broader reorganization.

Spotify, which had about 9,800 full-time staff as of Sept. 30, stated it expects to incur about 35 million euros (US$38.06 million) to 45 million euros in severance-related expenses.

Shares within the firm rose 3.5% in premarket buying and selling.

Spotify’s transfer comes at a time when tech firms are going through a requirement downturn after two years of pandemic-driven progress 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 guardian Alphabet Inc, as fast rate of interest hikes and the fallout from the Russia-Ukraine battle strain the financial system.

The firm had stated in October that it could decelerate hiring for the remainder of the 12 months and into 2023. Its shares greater than halved in a dismal 2022 for tech shares.

Reporting by Eva Mathews in Bengaluru; Editing by Sherry Jacob-Phillips and Shailesh Kuber