Spotify Plans To Announce Layoffs This Week: Report

According to the third-quarter earnings report of Spotify, the music-streaming giant currently has about 9,800 employees

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In an effort to cut costs, another big tech company, Spotify Technology SA, is planning to lay off its employees, joining the line of technology companies in announcing the job cuts to lower the costs. According to a Bloomberg report, the company might announce the layoffs as early as this week.

The company laid off 38 people from its Gimlet Media and podcast studios in October, as well as podcast editorial employees in September, and now it's planning to do more layoffs, but the number of job cuts is not specified, the report stated.

Founded in April 2006 by Daniel EK and Martin Lorentzon, Spotify is a proprietary Swedish audio streaming and media services provider. According to a website, it is one of the largest music streaming service providers, with over 456 million monthly active users including 195 million paying subscribers, as of September 2022. Home to 60 billion tracks and 1.9 million podcasts, Spotify is claimed to be one of the top destinations for music and other audio content, as per the website information.

According to the third-quarter earnings report of Spotify, the music-streaming giant currently has about 9,800 employees. Additionally, Spotify has made a big investment in podcasting since 2019, spending over a billion dollars on acquisitions and rights to popular shows, but the investments have yet to show returns and the shares have tumbled 66 per cent last year. Later in June, Spotify executives said that the podcast business would become profitable in the next one to two years, the news report added.

According to a Reuters report, in October 2021, the music streaming company had reported a 19% jump in paid subscribers for its premium service driven by demand in Europe and North America.

As per the industry insights, late last week, Google announced that it is laying off 6 per cent of its employees, which accounts for 12,000 employees across geographies. Amazon also announced a reduction of 18,000 employees from its workforce. Meta, the parent company of social media platform Facebook also laid off 11,000 employees in November last year.

Teena Jose

News Desk Reporter with Entrepreneur India

Teena is a post graduate in financial journalism. She has an avid interest in content creation, digital media and fashion.

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