Spotify follows the current trend and will also lay off many employees.
Layoff announcements are no longer confined to GAFAM. While we have been hearing for several months now about job cuts within giants like Microsoft or Amazon, we learn today that the king of music streaming will in turn slim down.
6% of employees will have to leave
The signs are piling up. A recession seems more and more imminent, and tech players are preparing for it. And this, regardless of the size. Thus, if Amazon is going to put in place a mega layoff plan, resulting in the departure of some 18,000 people, a company of a relatively smaller size like Spotify will also have to reduce its payroll.
The online music specialist has just announced that it was going to part with 6% of its employees, representing nearly 600 employees. The management’s objective would be to save around 50 million euros. “ Over the past few months, we have made considerable efforts to reduce costs, but it has not been enough “explained the leader Daniel Elk.
Spotify victim of its ambitions?
Like Google boss Sundar Pichai, who explained that his company’s recruitments corresponded to a different economic situation, Daniel Elk admits having had eyes bigger than his head.
” I was too ambitious investing beyond our revenue growth levels he continued. And indeed, last year, the Swedish company saw its operating expenses increase twice as fast as its income, due in particular to its aggressive policy in the development of podcasts.
Unfortunately for Spotify, advertising budgets for companies that should have been funding podcasts fell last year. The group had already decided last fall to delete 11 of its podcasts. It currently has nearly 500.
Source : Reuters
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