Spotify cuts 6% of employees in latest wave of layoffs

Spotify cuts 6% of employees in latest wave of layoffs

In a note shared on Spotify’s website, Daniel Athe CEO of the company, said that they have decided to cut about six percent of their employees reduce across the company. Daniel A In this context, he said that Spotify has made great strides in improving the speed of the company’s performance, but he added that they should work with the necessary efficiency. As such, Spotify has become the latest tech company to announce organizational changes that will result in layoffs and significant job cuts.

  • Complete dismissal of employees of virtual reality and HoloLens departments by Microsoft

Tsunami of layoffs on the heads of tech giants

Just like many companies in the tech sector, Spotify has seen a lot of growth during the pandemic, which has led to a lot of investment in the company over the past 3 years. Last year alone, Spotify’s operating expenses outpaced revenue growth by 2x. As Daniel Ek pointed out, with these conditions, we cannot hope for the stability of the existing situation and they will soon face big challenges.

Daniel Eck:

“I take full responsibility for the actions that got us here today.

Fired on Spotify

The salaries of all fired employees will be paid in full

All employees placed on the layoff list will receive severance pay, with the average employee receiving about five months of pay based on criteria such as length of tenure and local notice period requirements. Also, all accrued and unused vacation time will be paid, and departing employees will receive health insurance during the termination period. In addition, everyone will be eligible for two months of relocation services to help them find a new job, while people whose immigration status is linked to their job will receive support from HR and mobility teams.

A Spotify spokesperson told the Wall Street Journal that the wave of layoffs will affect about 600 employees and will not target any specific department. Daniel Eck also announced a few changes in the leadership system, perhaps the most significant of which is Dawn Ostroff’s decision to leave the company as director of content and advertising. Under his leadership, Spotify was able to increase its podcast content by 40x and more than double the revenue from its ad business.

Despite all this, despite the job cuts, Daniel Eck said he is confident 2023 will be a year full of continuous innovation, something unlike what they have introduced in the past few years. Maybe Spotify HiFi will finally make its long-awaited debut?

Related posts:

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  • Dismissal of employees of several departments of the company Riot Games
  • Alphabet lays off 12,000 employees + 97,000 tech job losses in 2022
  • Microsoft lays off thousands of employees

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