Streaming behemoth joins tech firms
Spotify Technology SA plans to lay off about 6% of its workforce, or 600 people, joining a slew of other tech companies in cutting costs.
The cuts will affect most of the company’s departments.
Despite increasing their headcount during the pandemic, tech companies, including Spotify, have been forced to lay off employees due to declining ad revenue and a bleak economic outlook.
“Severance payments related to layoffs could be up to €45 million, but Spotify’s margins, which are stuck in limbo, will rise, and this could lift prices,” Bloomberg analysts wrote.
Starting in 2019, Spotify made a significant investment in podcasting, spending over a billion dollars to acquire podcast networks, creation software, hosting services, and the rights to popular shows.