Tech Layoffs: Spotify to fire 600 employees after muted financial performance

Swedish music streaming giant Spotify has confirmed plans to lay off 600 employees, representing six per cent of its workforce, amid the deepening economic slowdown. The staff was informed about the move by the co-founder and CEO Daniel Ek. The company has nearly 9,800 employees with over 433 monthly active users in 2022.

Layoffs in Spotify

Spotify reportedly shut down 11 original podcasts from its in-house studios in October last year as a part of cost-cutting and layoffs that recently took place. 'How to Save a Planet', 'Crime Show', and 'Medical Murders' were among the podcasts cancelled from in-house studios Gimlet and Parcast.

Nearly 5 per cent of Spotify’s staff on original podcasts were laid off or reassigned to new shows.

It was in June last year when for the first time, reports emerged that Spotify was reducing new hiring by at least 25 per cent. It was during this time that tech companies were navigating through volatile global conditions.

Spotify has also shut down its lightweight listening app, 'Spotify Stations'.

Spotify's chief financial officer, Paul Vogel, has also said that they are "clearly aware of the increasing uncertainty regarding the global economy."

What else will be affected this year?

In the second quarter of this year, Spotify will say goodbye to "Horoscope Today."