- Spotify Technology S.A. (NYSE:SPOT) eyed layoffs by this week, joining the downsizing wave of technology companies from Amazon.Com Inc (NASDAQ:AMZN) to Meta Platforms Inc (NASDAQ:META).
- Spotify intends to cut about 6% of its employee base and incur €35 million to €45 million in related charges.
- In October, Spotify removed 38 staff from its Gimlet Media and Parcast podcast studios. The move involved less than 5% layoffs from Spotify’s podcast staff, Bloomberg reports.
- Spotify has 9,800 employees, according to its third-quarter earnings report.
- Tech companies added to their headcounts to tap the pandemic-aided demand.
- However, companies including Amazon.com, Meta, Microsoft Corp (NASDAQ: MSFT), and Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) had to downsize on pandemic recovery to contain costs following advertising revenue slowdown and macro headwinds.
- Spotify had splurged on acquiring podcast networks, creation software, a hosting service, and the rights to popular shows like The Joe Rogan Experience and Armchair Expert.
- In June, Spotify said its podcast business would become profitable in the next one to two years.
- Price Action: SPOT shares traded higher by 4.19% at $102.21 premarket on the last check Monday.
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