Spotify is ready to have layoffs as quickly as this week as the corporate strikes ahead with plans to cut back operational bills, in accordance with an individual accustomed to the matter.
The layoffs are anticipated to be extra broad than a earlier spherical of cuts in October, which impacted employees members engaged on canceled reveals from in-house podcast studios Gimlet and Parcast.
A consultant for Spotify declined to remark.
Spotify executives have beforehand signaled plans to cut back headcount-related bills, with CEO Daniel Ek telling employees final June that the corporate would scale back its hiring development by 25 % and “be a bit extra prudent with absolutely the stage of recent hires over the following few quarters.” Paul Vogel, the corporate’s chief monetary officer, additionally pointed to “growing uncertainty concerning the worldwide economic system” at Spotify’s investor day in June as a motive for “evaluating [Spotify’s] headcount development within the close to time period.”
Although the precise variety of layoffs — first reported by Bloomberg — just isn’t instantly clear, different tech corporations like Amazon, Microsoft and Meta have every introduced main rounds of layoffs impacting hundreds of workers in current months. The newest layoff announcement got here from Google dad or mum firm Alphabet, which is ready to cut back its employees by 6 %, which represents round 12,000 workers.
As of the top of the third quarter, Spotify employed round 9,800 folks. The audio firm introduced in €3.04 billion in income and added 195 million paid subscribers through the third quarter. On the time, Ek stated the financial downturn had not had a “materials impression” on the corporate’s enterprise however that Spotify could be “extra selective” with its “general spending.”
Spotify will report its fourth-quarter earnings on Jan. 31 earlier than the market opens.