Spotify cuts 6% of its workforce amid revenue crunch - DW (English)

Music streaming elephantine Spotify announced connected Monday it was cutting 600 jobs, or up 6% of its planetary workforce, joining different tech giants who person been forced to downsize.

The Stockholm-based company, which employs astir 10,000, intends to reshuffle its absorption arsenic portion of the revamp successful an effort to constrictive the spread betwixt its operating costs and revenues.

CEO Daniel Ek said past twelvemonth saw operating costs turn to treble the revenues.

"In hindsight, I was excessively ambitious successful investing up of our gross growth." Ek said connected Spotify's authoritative blog. "I instrumentality afloat accountability for the moves that got america present today."

Did Spotify turn excessively fast?

Like galore different tech companies, Spotify expanded its workforce to cater to the exponential summation successful request during pandemic lockdowns.

In 2017, Spotify employed astir 3,000 staffers. Its workforce much than tripled successful the years that followed, reaching immoderate 9,800 by the extremity of 2022.

Its spending didn't lone determination into salaries but besides into merchandise investment, arsenic the app spent implicit a cardinal dollars to get exclusive podcasts.

The spread betwixt the spending and gross "would person been unsustainable semipermanent successful immoderate climate, but with a challenging macro environment, it would beryllium adjacent much hard to adjacent the gap," Ek said.

In caller months, arsenic the slowed planetary system has punished advertising worldwide, tech giants specified arsenic Amazon, Meta, Google and Microsoft person besides announced sweeping occupation cuts.

rmt/wmr (AFP, AP)