People who are aware of the plans claim that Spotify Technology SA may make layoffs as early as this week, joining a long list of big firms, including Amazon.com Inc. and Meta Platforms Inc., that have announced staff reductions as a cost-cutting measure.
The number of posts to be abolished was not indicated by the people. In October, Spotify fired off 38 people from its Gimlet Media and Parcast podcast studios. According to its third-quarter financial report, the music streaming company employs approximately 9,800 people.
During the pandemic, tech companies increased their workforce, but were compelled to downsize it due to decreased advertising revenue and a bleak economic outlook.
Among the largest businesses to recently announce staff reductions were Amazon.com, Meta, and Microsoft Corp. Google parent Alphabet Inc. announced Friday that it will eliminate approximately 12,000 employees, or more than 6% of its global workforce.
The anticipated cuts were not discussed by a spokeswoman for Spotify.
Beginning in 2019, the corporation made a significant investment in podcasting. It invested more than 1 billion to purchase podcast networks, production tools, a hosting platform, and the rights to well-known programmes like The Joe Rogan Experience and Armchair Expert.
However, the investments have put investors’ patience to the test. As investors questioned when they’d start seeing returns, shares fell 66% last year. In June, executives from Spotify predicted that its podcast division will turn a profit in the next one to two years.
