In an effort to reduce expenses, Spotify Technology, a major tech giant, is proposing layoffs. According to a Bloomberg article, the business may reveal the layoffs as soon as this week. The business made a go of 38 employees from its Gimlet Media and Parcast podcast studios in October, in addition to podcast editorial staff in September. It is now intending to let go of further employees, though the precise amount of job cutbacks is not yet known.
The music streaming juggernaut Spotify currently employs around 9,800 people, according to its third-quarter financial report.
Additionally, Spotify has spent over a billion US dollars on purchases and the rights to popular shows since 2019, but these investments have yet to yield any dividends, and the stock price has fallen 66% since the beginning of the year. In June, Spotify management predicted that the podcast industry would turn a profit within a period of 1 to 2 years.
In the tech sector, layoffs have occurred before, and Spotify may not even be the last. Even some of the largest and most lucrative companies in a sector are reducing their employment in order to save spending. Google stated late last week that it is firing 6% of its workforce, or 12,000 workers globally, across all departments. A drop in the number of staff at Amazon of 18,000 was also announced.
In November of the previous year, 11,000 workers were also let off by Meta, the parent organization of the social media site Facebook. Of the total workforce the corporation employs across all of its sites, that represented 13%. One of the earliest businesses to begin firing staff members was Twitter. Twitter now only has 2,300 employees, which is 70% fewer than it had before Musk took control of the company, according to a recent statement by Musk. Before the layoffs, Twitter had 7,500 workers.