Spotify to Lay Off Workers This Week as Job Cuts in Technology Sector Continue

Spotify Expertise SA is planning layoffs as quickly as this week, in line with folks accustomed to the plans, becoming a member of a slew of know-how corporations from Inc. to Meta Platforms Inc. in saying job cuts to decrease prices.

The variety of positions to be eradicated wasn’t specified by the folks. Spotify laid off 38 employees from its Gimlet Media and Parcast podcast studios in October. The music streaming big has about 9,800 workers, in line with its third-quarter earnings report.

Tech corporations added to their headcounts throughout the pandemic however have been pressured to make reductions in response to diminished promoting income and a shaky financial outlook., Meta and Microsoft Corp. have been among the many greatest corporations to announce employees reductions just lately, whereas Google mother or father Alphabet Inc. stated Friday it’s going to minimize about 12,000 jobs, greater than 6 p.c of its international workforce.

A Spotify spokesperson declined to touch upon the upcoming cuts.

The corporate made an enormous dedication to podcasting starting in 2019. It spent over a billion {dollars} on buying podcast networks, creation software program, a internet hosting service and the rights to well-liked exhibits like The Joe Rogan Expertise and Armchair Professional.

Nonetheless, the investments have examined traders’ persistence. Shares tumbled 66 p.c final 12 months as traders questioned after they’d start seeing returns. Spotify executives stated in June its podcast enterprise would turn out to be worthwhile within the subsequent one to 2 years.

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