Spotify Becomes The Latest Company To Lay Off Workers Due To Redundancy

Another company is laying off workers as companies continue to address redundancies on their end. The latest one to announce job cuts is music streamer Spotify.

This was announced in a blog post put up by Spotify CEO Daniel Ek.

Initially, the 39-year-old started by saying that he would be addressing the changes that would allow him to get back to the part where he works best.

This comes also after the departure of their head of content and advertising, Dawn Ostroff. He acknowledged how Spotify was able to grow its podcast content by 40%, driving significant innovation that helped in making Spotify the leading music and podcast service in many markets.

This was followed by the dreaded decision to reduce their number of employees to bring down their costs.

"As part of this effort, and to bring our costs more in line, we've made the difficult but necessary decision to reduce our number of employees," Ek said.

"To offer some perspective on why we are making this decision, in 2022, the growth of Spotify's OPEX outpaced our revenue growth by 2X," he added. "That would have been unsustainable long-term in any climate, but with a challenging macro environment, it would be even more difficult to close the gap."

Hence, Spotify becomes the latest company to lay off workers due to redundancies. Google, Microsoft, Amazon and Apple retail had cut their manpower complement recently to change their operations.

Those affected by the music streaming service company’s move will receive on average five months of severance pay for any accrued or unused vacations. They will also continue to receive healthcare benefits during their severance period.

Spotify had about 9,800 full-time employees in 2022 and expects to incur at least £30 million in severance-related charges. The company had said in October it would slow down hiring for the rest of the year and into 2023, BBC reported.