Spotify Cuts 6 Of Its Workforce Or 600 Positions

The number one audio streaming service in the world, Spotify, announced on Monday that it would be cutting 6% of its workforce, or almost 600 positions. This is the most recent in a string of significant layoffs at Internet giants in an effort to lower costs. The layoff plan is the largest in the young history of the Swedish flagship with half a billion users, a start-up founded in 2006 in Stockholm and which has grown to become one of the few big names in Europe of Tech. • To read also: The parent company of Google cuts 12,000 jobs, following the movement of the tech giants • To read also: Amazon announces closings and hirings in the United Kingdom • To read also: "I have become a zombie ": Amazon employees denounce illegal practices.

His 39-year-old boss, Daniel Ek, acknowledged "a culture shift" after years of putting growth before profits in a message to staff members that was also posted online. The CEO and co-founder of Spotify acknowledged, "In retrospect, I was too ambitious by investing faster than our growth in turnover.

According to the leader of the company listed in New York, "as a result, we are decreasing our workforce by approximately 6% across the group.". On Monday, he said, there will be one-on-one interviews with the impacted workers.

A 35–45 million compensation should be allocated toward the social plan. The group's action, which had been having trouble lately, increased by 4 point 6 percent to 97 point 91 dollars at the opening of the New York Stock Exchange.

Despite a stunning increase in the number of its subscribers and a lead over its rivals like Apple Music or Amazon Music, Stockholm-based Spotify has consistently posted losses for years. This is true even though the company has occasionally been profitable. The group, whose annual results are expected to be released next Tuesday, increased its net loss to 166 million euros during the third quarter.

On Monday, Daniel Ek explained, "As you know, we have made a significant effort in recent months to reduce our costs, but it has simply not been enough. The scandinavian billionaire asserts that Spotify's investments have grown at a rate that is twice as rapid as its annual revenue.

"Untenable" "It would be untenable in the long run in any context, but in a difficult macroeconomic environment, it will be even more difficult to plug the hole," he emphasizes. Additionally, in recent years, Spotify has invested over $1 billion euros in the podcast industry, propelling it to the top spot globally.

Analysts claim that, however, no proof of the financial return has been offered. Along with the creation of the podcast, Joe Rogan, an American celebrity, was accused of spreading false information on his shows, which added to the controversy surrounding him.

At the end of September, the platform had a total of 456 million users, including 195 million paying subscribers. The platform combines a subscription model and a free model using advertising. By the end of 2022, it intended to have 479 million active monthly users, including 202 million paying subscribers.

By 2030, the organization hopes to have one billion users. The majority of its paying subscribers were responsible for its 9.6 billion euro annual turnover in 2021, while the company's workforce had tripled in size over the previous five years to 9,800 at the end of September.

Even though the Swedish group has a much smaller workforce than the global internet giants, its announcement comes after a number of redundancy plans at those companies in recent weeks. After Amazon, Meta, and Microsoft announced layoffs, Google followed suit on Saturday and cut 12,000 jobs globally, or slightly more than 6% of its workforce.

By the end of March, 10,000 employees will be let go, Microsoft announced on Wednesday. Despite the fact that there are far fewer of them.

After Amazon, Meta, and Microsoft announced layoffs, Google followed suit on Saturday and cut 12,000 jobs globally, or slightly more than 6% of its workforce. By the end of March, 10,000 employees will be let go, Microsoft announced on Wednesday.

Despite the fact that there are far fewer of them. After Amazon, Meta, and Microsoft announced layoffs, Google followed suit on Saturday and cut 12,000 jobs globally, or slightly more than 6% of its workforce.

By the end of March, 10,000 employees will be let go, Microsoft announced on Wednesday.

The layoff plan is the largest in the young history of the Swedish flagship with half a billion users, a start-up founded in 2006 in Stockholm and which has grown to become one of the few big names in Europe of Tech.