5.9 C
Saturday, March 2, 2024
Home"I Take Full Accountability": Spotify Slashes Hundreds Of Jobs As Tech Layoffs...

“I Take Full Accountability”: Spotify Slashes Hundreds Of Jobs As Tech Layoffs Intensify


Related stories

Breakthrough Biotech Paves Way for Green Fuel Production Boom

A new University of California – Riverside (UCR) study found that introducing a simple, renewable chemical to the pretreatment step can finally make next-generation biofuel production both cost-effective and carbon neutral. The first step, breaking dow...

Is It Time To Ditch Tech Stocks for Gold?

Via SchiffGold.com This week Peter covers the highlights of the last few weeks of volatile trading, paying special attention to Nvidia, Wall Street’s favorite AI stock, and Newmont Corporation, a heavy hitter in the gold mining industry. Both companies...

IRS To Retrieve Potentially Hundreds Of Millions Of Dollars From Americans Who Failed To File Tax Returns

IRS To Retrieve Potentially Hundreds Of Millions Of Dollars From Americans Who Failed To File Tax Returns Authored by Tom Ozimek via The Epoch Times (emphasis ours), The Internal Revenue Service (IRS) building in Washington, on June 28, 20...

US Military Begins Airdropping Food Into Gaza

US Military Begins Airdropping Food Into Gaza With the humanitarian disaster in Gaza growing more desperate each day, President Biden on Friday afternoon announced that the United States government would begin airdropping food and other su...

The Lucas critique cuts both ways

I’m occasionaly asked how NGDP level targeting would have performed in a specific historical case, such as 1981 or 2023. The usual worry is that when NGDP is well above trend, a policy of level targeting might require a highly contractionary monetary policy, triggering a recession. Here it’s worth recalling the Lucas critique (from Wikipedia): […]
"I Take Full Accountability": Spotify Slashes Hundreds Of Jobs As Tech Layoffs Intensify

Add Spotify Technology SA to the growing list of tech companies laying off because they hired too many employees during the virus pandemic. We've read countless letters and memos from tech executives to employees over the last several quarters explaining how they made a colossal mistake by rapidly expanding operations because they thought pandemic demand would continue but were entirely blindsided by the incoming slowdown and forced to reduce headcount and other cost-cutting measures. 

"Like many other leaders, I hoped to sustain the strong tailwinds from the pandemic and believed that our broad global business and lower risk to the impact of a slowdown in ads would insulate us," Spotify CEO Daniel Ek told employees in a letter

As a result of poor business planning, Ek said Spotify is planning to slash 6% of its headcount.

"In hindsight, I was too ambitious in investing ahead of our revenue growth. And for this reason, today, we are reducing our employee base by about 6% across the company. I take full accountability for the moves that got us here today," the exec said. 

The latest filings show the music-streaming giant has approximately 9,800 employees. The cut would be equivalent to about 600 workers. 

Shares rose more than 6% in premarket trading to the $104-handle on the news. The stock lost more than 73% since peaking at $364 in early 2021. 

Ek added that Dawn Ostroff, chief content and advertising business officer, will leave the company as part of a broader reorganization.

He noted:

To start, we are fundamentally changing how we operate at the top. To do this, I will be centralizing the majority of our engineering and product work under Gustav as Chief Product Officer and the business areas under Alex as Chief Business Officer.

Spotify's announcement is yet more hemorrhaging of talent from tech companies as the economic outlook sours. Amazon, Meta, Microsoft Corp, and Google have been some of the largest companies to announce cuts. 

Layoff tracking website Layoffs.fyi shows that 173 tech companies so far this year have reduced headcount by 56,000. Last year, 1,035 tech companies fired 159,000 employees.

Tyler Durden Mon, 01/23/2023 - 08:50


- Never miss a story with notifications

- Gain full access to our premium content

- Browse free from up to 5 devices at once

Latest stories


Please enter your comment!
Please enter your name here