Music streaming company Spotify said on Monday it plans to cut 6% of its workforce, or about 600 jobs, adding to a glut of layoffs in the tech sector as companies brace for a possible recession.
The company also said its head of content and advertising, Dawn Ostroff, will be leaving as part of a larger reorganization.
Spotify, which had around 9,800 full-time employees as of September 30, said it expects to incur around 35 million euros ($38.06 million) to 45 million euros in severance-related charges. departure.
Spotify’s move comes at a time when tech companies are facing falling demand after two years of pandemic-driven growth during which they had been aggressively hiring. This has led companies like Meta Platforms Inc to Microsoft Corp to cut thousands of jobs.
Sweden-based Spotify saw advertisers cut spending, mirroring a trend seen at Meta and Google’s parent company Alphabet Inc, as rapid interest rate hikes and the fallout from the Russia-Ukraine war exert a drag. pressure on the economy.
The company had said in October that it would slow hiring for the rest of the year and through 2023.