Spotify will cut 600 workers from its workforce

The wave of mass layoffs in the technology industry has also affected a Spotify, the leading audio streaming platform. The company announced that rwill cut 6% of its workforcethat is, around 600 workers.

In a statement to employees, the company’s CEO and co-founder, Daniel Ek, explained the reasons behind the staff cut: “In hindsight, I have been too ambitious investing faster than our turnover growth.”

“For this reason, we reduce our staff by around 6% throughout the group,” explained its director.

Spotify, created in 2006 with headquarters in Stockholm, has approximately 500 million subscribers. However, the company has been recording losses for years: its shares fell 66% in 2022.

In recent years, Spotify has also invested more than one billion euros in the podcast industry, in which it has become a world leader. But the benefits of this investment are still unknown, according to analysts.

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“As you know, we’ve made a considerable effort in recent months to reduce our costs, but it just hasn’t been enough,” added Ek, who also explained that Spotify’s investments grew twice as fast as its revenue last year.

“In the long term it would be unfeasible in any context, but in a difficult environment at the macroeconomic level, it will be even more difficult to cover the hole,” he stressed.

Spotify is listed on the New York Stock Exchange and at its open on Monday, shares rose 4.6% to $97.91. (YO)