Spotify to Lay Off 6% of Its Work Force

Spotify, the audio streaming company, has laid off 6 per cent of its employees (roughly 600). This is part of a growing number tech companies that are cutting back on costs amid persistent worries over the global economy.

“As you are well aware, over the last few months we’ve made a considerable effort to rein in costs, but it simply hasn’t been enough,” Daniel Ek, Spotify’s chief executive, said in a note to employeesMonday. At the end of the third quarter, the company had more that 9,800 employees. according to regulatory filings.

In response to concerns about a recession, Alphabet, Google’s parent company, has laid off its employees. Last week, Alphabet, Google’s parent company, laid off 12,000 employeesAnd Microsoft let go of 10,000. Media companies are also reducing their workforce. Vox Media cut 7 percent of its staff on FridayIn December, The Washington PostThe company informed employees that there would be layoffs.

According to Mr. Ek, the reason Spotify laid off employees in Stockholm was mainly because of macroeconomic problems. “I was too ambitious in investing ahead of our revenue growth,” he wrote. The company offers employees five months of severance and health benefits, as well as career counseling services. Spotify will pay 35 million to 45 millions euros in severance fees, according the company. filing with the Securities and Exchange Commission.

Mr. Ek also announced some changes among Spotify’s executives as part of an effort to “restructure our organization.” Dawn Ostroff, the company’s chief content and advertising officer, is leaving. She is a veteran TV and video executive who was hired by Spotify in 2018, as it was looking for new ways to expand its music offerings.

As part the reorganization, Alex Norström, chief business officer, and Gustav Söderström, chief research and development officer, will take on roles as co-presidents.