Spotify revealed Monday that it would slash 6% of its worldwide personnel due to a rough economy that has reduced user and advertising expenditures.
Around 600 staff members will be impacted by the changes at Spotify, which employs roughly 9,800 people. It employs 5,400 Americans and 1,900 Swedes, according to LinkedIn.
The Spotify job cuts were announced in a message addressed to Spotify employees on Monday. The Swedish company is publicly traded on the New York Stock Exchange, per CNBC.
In a message posted on Spotify's website, CEO Daniel Ek said that there would be one-on-one meetings with affected employees over the next few hours.
The pandemic lockdowns had benefited the music streaming platform because more individuals had looked for entertainment while confined at home. However, Ek said the company's growth-focused business strategy has to change.
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Last year, the operational expenditures of Spotify climbed twice as fast as its income. He noted that this disparity would be "unsustainable" in the long run in any market environment but harder to fix in "a challenging macro environment," he noted.
Ek added that Spotify had made a "considerable effort" to cut expenses in recent months, but that measure was not enough, which prompted the Spotify job cuts, according to AP News.
This month, major tech firms like Amazon, Microsoft, and Google made thousands of job cuts as the COVID-19 pandemic-related economic boom began to fade.
Google parent Alphabet CEO Sundar Pichai recently announced intentions to reduce 12,000 workers globally, citing the necessity for "tough choices" to harness the immense prospects awaiting, per Forbes.
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