Spotify Technology will likely lay off employees, which might happen as soon as this week.
Bloomberg News reported on Sunday that Spotify Technology is considering layoffs as soon as this week to slash costs, joining Alphabet Inc., Amazon.com Inc., and Microsoft Corp. in doing so.
Spotify, the Swedish music streaming company, announced Monday that it would let off 6% of its roughly 10,000 staff, the latest in a series of cost-cutting announcements by technology businesses.
“In retrospect, I was overly optimistic in investing ahead of our sales growth. As a result, we are decreasing our employment base by around 6% across the board today, “Spotify CEO Daniel Ek announced the news on the company’s official blog.
Last year, tech corporations laid off workers as a surge in demand during the pandemic faded. Layoffs have continued this year as companies cut costs to weather the economic downturn.
In recent weeks, Alphabet, the parent company of Google, announced the elimination of 12,000 employees, while Microsoft announced the elimination of 10,000. Amazon’s layoffs will affect almost 18,000 jobs.
Other tech firms, including Facebook-parent Meta and Elon Musk’s Twitter, laid off thousands of workers late last year.