Spotify to cut 6% of its workforce, the latest big tech layoffs

Spotify It will cut its workforce by 6%, the podcast company said Monday, the latest heavyweight layoffs and tightening of its belt.

Based on the number of workers Spotify reported at the end of 2021, a 6% cut would mean cutting nearly 400 jobs.

Spotify posted on its news blog, CEO Daniel Ek said in a note to staff. “In hindsight, I was too ambitious to invest before our revenue grew… I take full responsibility for the moves that got us here today.”

During periods of social distancing, people use Spotify She tends to calm down, as they stopped listening to music on the go when they were stuck at home. But the company, which is the largest music streaming service of its kind, has continued its growth trajectory: It has set expectations that, when it reports its latest results next week, it will pass 200 million subscribers at the end of last year, to 479 million listeners.

Spotify’s layoffs make it the latest company in technology — and other industries — to cut staff. Twitter and Microsoft AmazonAnd Meta and Google, too, have let go of thousands of workers in recent months. Like Spotify, many companies have cited over-hiring during severe periods of pandemic demand; Others have been hampered by shrinking advertising business. Combined, they paint a picture of a corporate world preparing for a broader global economic downturn.

In addition to the layoffs, Ek indicated on Tuesday that Spotify will reorganize some of its senior leadership.

Gustav Söderström was named Chief Product Officer, having previously held the position of Head of Research and Development; Alex Norström was promoted to Chief Business Officer, after previously playing that role, and focused on the company’s “freemium” business model, which refers to its mix of free subscriptions and ad-supported and paid listening.

Together, Soderstrom and Norstrom will serve as co-chairs, Eck said, “effectively helping me run the company day-to-day.”

Dawn Ostroff, who was Spotify’s chief content and advertising officer, is leaving the company. Norstrom will assume responsibility for the content, advertising and licensing. To help with the transition, Ostrov will remain a senior advisor for the short term.