Music streaming giant to cut 6% of the workforce, pay severance to impacted employees
After Microsoft, Amazon, Google, and other tech. companies layoff their employees, Music streaming giant Spotify also comes under this category Let’s understand what happened in Spotify:
- Spotify announced that it will cut 6% of its workforce in an effort to bring the company’s costs “more in line” and to become “more efficient”.
- The company also announced that Dawn Ostroff, the chief content officer, will be leaving the company. Spotify credited Ostroff with growing the company’s podcast content by 40x and driving significant innovation in the medium.
- CEO Daniel Ek stated that the average impacted employee will receive approximately 5 months of severance, calculated based on local notice period requirements and employee tenure.
- Spotify will also be paying for all remaining PTO and continuing to cover healthcare for employees during their severance period.
- All impacted employees will be eligible for outplacement services for two months. HRBPs will be working with employees whose immigration status is connected with their employment.
- Spotify cited the growth of the company’s OPEX outpacing revenue growth by 2X as the reason for the job cuts. The company has been impacted by advertisers pulling back on spending, similar to trends seen at Meta and Google parent Alphabet Inc.
- In October, Spotify laid off 38 staff from its Gimlet Media and Parcast podcast studios. The company has about 9,800 employees, according to its third-quarter earnings report.
Spotify Announces Job Cuts and Departure of Chief Content Officer