Spotify has not issued any official comment yet.
The music streaming application Spotify will likely trim down its workforce as early as this week, according to a Bloomberg report. The news comes just two days after Google parent Alphabet announced to cut 12,000 jobs to lower its costs.
The media report, however, did not specify the number of employees that would be laid off from Spotify. The Stockholm-based company currently employs 9,800 employees, Bloomberg reported citing the company’s third-quarter earnings report.
Spotify has not issued any official comment yet. But this is not the first layoff for the company. In October last year, the music streaming giant let go of 38 employees from its Gimlet Media and Parcast podcast studios.
In December last year, reports suggested that Spotify was planning to end the production of several of its live audio shows. The move comes as no surprise since live audio streaming is seeing a decline post-pandemic.
If Spotify goes ahead with the layoff, it will join several other multinational tech giants like Alphabet, Microsoft, Meta, Twitter, and several others who trimmed their workforce amid a shaky economic outlook.
Over the weekend, Alphabet notified in a staff memo to lay off 6% of its workforce or cut about 12,000 jobs. The Sundar Pichai-led company was prepared for “a different economic reality” and the CEO took “full responsibility” for the decisions that led to the layoffs, the memo noted and as read on Reuters.
Just last week, Microsoft announced to cut as many as 10,000 jobs amid grim global economic conditions. The move will impact less than 5% of Microsoft’s workforce and will conclude by March end.