Spotify Joins Microsoft And Amazon, As It Sets To Layoff 6% Of Workforce

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Spotify Joins Microsoft And Amazon, As It Sets To Layoff 6% Of Workforce
Spotify Joins Microsoft And Amazon, As It Sets To Layoff 6% Of Workforce
What is starting to look like a trend among big technological and software companies like Amazon, Meta, Twitter, Microsoft and now Spotify, is looking like a dream for most people working for these companies all over the world.
Brand Spur Nigeria, earlierly reported on Microsoft cutting off 11,000 employees which looked alarming considering it boasts of one of the largest workforce in the world.

The online music streaming platform, has laid out plans to axe 600 jobs owing this decision to a looming recession. This was disclosed in a statement on Monday by Daniel Ek, Chief Executive officer for Spotify, who mentioned that this cut would only affect 6% of its general workforce.

He also disclosed that Dawn Ostroff, the chief content and advertising business officer would also be dropped as part of a broader reorganisation.

The CEO who described this decision as “difficult” but “necessary”, also gave further reasons for the major decision citing that Spotify’s operating expenses (OPEX) was getting larger than the revenue the company made.

He said “That would have been unsustainable long-term in any climate, but with a challenging macro environment, it would be even more difficult to close the gap,” he said.

“I hoped to sustain the strong tailwinds from the pandemic and believed that our broad global business and lower risk to the impact of a slowdown in ads would insulate us.”

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“In hindsight, I was too ambitious in investing ahead of our revenue growth. And for this reason, today, we are reducing our employee base by about 6 percent across the company. I take full accountability for the moves that got us here today.

“My focus now is on ensuring that every employee is treated fairly as they depart.”

This new list of retrenched workers adds to the long list of workers, who have been sacked across the globe in major tech companies although spotify still records the least.

According to the revenue reports, Spotify in the Q3 recorded 19% ad-supported operating revenue, which was higher than what it recorded in 2021, despite its paid subscribers rising to 13%, at 195 million, but this gave no support as shares prices fell which has caused wider concerns in the industry.

This might not be the last job-cutting news, we might hear from the tech global system, as most international conglomerates such as Amazon, Microsoft, even Goldman Sachs have all retrenched a large number of workers due to the current state of the global economy.

However, we all hope things start looking up in the global economy.