Layoff season, Spotify is also laying off 6% of its employees!
The layoff season of the big tech companies might have begun with Twitter and Amazon. However, continued with the layoffs at Google and Microsoft. And, there’s more to the story. Spotify is also laying off 6% of its global employees who are a part of its workforce. As per the announcement, 600 employees will be affected by the same. In his official note sent to the employees, Daniel Ek who is the CEO and co-founder of Spotify mentioned that he holds himself accountable for the moves that led Spotify to announce the layoffs. He added that since 2022 the operating expenses outpaced the revenue growth of Spotify. The effort put in to rein in cost has not been enough.
Employees who have been impacted by the layoffs will be invited for one-on-one conversations which will be held for a few hours. They will receive severance for up to five months on average. Unused vacation will be paid out to the impacted employees. Healthcare coverage will continue in the severance period. Spotify confirmed that it will offer immigration as well as career support to its employees.
Shares of Spotify dropped in the year 2022 by a whopping 50%. The share prices are up by 6.2% since then which indicates that these have somewhat recovered.
However, the economic setback faced by the company is huge. Unfortunately, this led to the layoffs of approximately 600 employees at Spotify. The impact this layoff will have on the lives of the employees and those dependent on them is immense. It is a serious concern today as companies are increasingly laying off their employees.