Spotify Sheds Around 600 Employees
Spotify managed to escape the outpouring of 2022 tech layoffs only to eventually succumb and cut 6% of its workforce, or nearly 600 employees, in late January. In a memo sent to staff, Spotify CEO Daniel Ek said the organizational changes were made, “in an effort to drive more efficiency, control costs, and speed up decision-making.”
Ek told his employees as late as last June that he didn’t expect any layoffs on the horizon. While most of its competitors struggled through 2022 due to a decline in digital advertising spend, Ek believes Spotify’s massive global scale could help it weather the storm. Spotify implemented cost savings and slowed hiring, but none of that was ultimately enough to alleviate the financial pressure.
“While it is clear this path is the right one for Spotify, it doesn’t make it any easier—especially as we think about the many contributions these colleagues have made,” Ek said.
