Music streaming platform Spotify is to cut 6% of its 10,000 employee work force, after hiring aggressively over the pandemic period. It is line with other tech companies who have stripped back their workforces.
Spotify will be letting 6% of its work force go after major cuts to improve company ‘efficiency’. CEO Daniel Ek has said that he was ‘too ambitious’ and expanded the company too quickly.
It follows similar setbacks from other tech companies such as Microsoft and Google. Last week, Google said it was shedding 12,000 jobs and Microsoft let roughly 10,000 employees go.
Ek said that he ‘took full accountability for the moves that got us here today’ in a company-wide statement. The company hired twice as quickly as its revenue growth in 2022, leaving a financial vacuum that it is unable to fill, at least for now.
It’s worth noting that Spotify makes 85% of its revenue from its subscription model, with the rest coming from ad revenue. One individual subscription costs £10 GBP a month – it has never increased since it first launched.
Spotify is also an industry titan, boasting 456 million monthly users. The company has never posted a full-year net profit and routinely faces accusations of underpaying artists per stream. Ek himself has a net worth of over $2 billion USD.
f*ck it, i was laid off from spotify 🥲 https://t.co/VxQDCiFLej
— emvu (@whoisemvu) January 24, 2023