Music streaming firm Spotify said on Monday it plans to cut 6 percent of its workforce, or about 600 jobs, adding to a flurry of layoffs in the technology sector as companies brace for a possible recession. are doing
The company also said its chief content and advertising business officer, Don Ostroff, will depart as part of a broader restructuring.
Spotify, which had about 9,800 full-time employees as of Sept. 30, said it expected to incur about 35 million euros ($38.06 million) to 45 million euros in severance-related charges.
Spotify’s move comes at a time when tech companies are facing a slowdown in demand after two years of pandemic-fueled growth during which they aggressively hired. This led to the loss of thousands of jobs from Meta Platforms Inc. to Microsoft Corporation.
Sweden-based Spotify has seen advertisers pull back on spending, mirroring a trend seen at Meta and Google parent Alphabet Inc, due to sharply rising interest rates and the fallout from the Russia-Ukraine war. There is pressure on the economy.
The company said in October that it would reduce hiring for the rest of the year and through 2023.
