Spotify Will Fire Around 1500 Employees During Its Third Layoff
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Spotify will provide employees in severance period with five months of severance pay, healthcare coverage, and vacation pay. On Monday, Spotify said it will fire around 1,500 employees, or approximately 17% of its headcount. This brings down the costs after letting down 600 staff in January.
After a round of job cuts, some have begun reducing their workforce again. This has been done with announcements coming from Amazon to Microsoft-owned LinkedIn. Spotify CEO Daniel Ek said the company hired more employees in 2020 and 2021 due to the lower capital cost.
When the output of Spotify increased, much of it was linked to having more resources. Recently, Spotify invested over a billion dollars in building its podcast business, signing up celebrities such as Prince Harry and Meghan Markle. This has expanded its market presence in most countries across the globe. This has been done especially in its quest to reach a billion users by 2030.
In the company’s third quarter, this has been aided by many price hikes, especially in its streaming services. The subscriber numbers are growing in every region, and the company forecasts its monthly number to its listeners. On Monday, the CEO of Spotify said that this company’s size reduction will feel large by giving some positive earnings reports. He further stated that it depends on its performance. The company will start informing the impacted employees on Monday.
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