Swedish music Streaming giant Spotify said Monday it plans to take a 6% cut of It has nearly 10,000 employees, adding to the glut of Layoffs in the technology The sector is also preparing companies for a possible Recession.
company also said her boss content and advertising business The officer, Don Ostrov, is leaving as part of broader reorganization.
Spotify CEO Daniel Ek announced Restructuring in It was a message to the staff also posted online.
“To bring in our costs more in line, we have made Difficult, but necessary decision to reduce Our number of Eck Books.
“I was hoping to keep the strong tailwinds out of the pandemic and I think we have a wide global business and less risk to influence of slowing down in Ads will be isolated us. In hindsight, I was very ambitious in Invest in the future of Our returns growth. And for This is amazing reasonToday, we are reducing employee base of about 6% across the company.”
Spotify, which had about 9,800 fullStaff time of On September 30, it said it expected to incur around €35 million ($38.06 million) to €45 million. in Termination related fees.
“I take full accountability for the moves that happened us Here today, “Ek added.
Involved in The company rose 3.5%. in before being put on the market trading.
Listed Swedish company on The New York Stock Exchange (NYSE) has invested heavily since its launch in fuel growth with expansions in new markets and, in Later Years, Exclusively content Like podcasts.
Spotify has never done that before posted a full-year net profit though success in the online music market.
Spotify move come at a time tech companies facing a demand shrinkage after two years of pandemic driven growth during which they were employed vigorously. It resulted in likes of The Google parent Alphabet, owner of the Facebook Meta, Amazon, and Microsoft announce dozens of thousands of Job cuts, as the sector faces economic headwinds.
Spotify has seen advertisers pull out back on Spending, mirroring the trend seen in Meta and Google parent Alphabet, quick interest rate The rise and fallout of the Russo-Ukrainian War put pressure on economy.
The company said in October it will slow down down Recruit for the rest of the year And in 2023 shares more than half in A dismal 2022 for tech Stores.
