Spotify designs to cut 6% of the workforce and range heads to leave

January 24, 2023: On Monday, Music streaming company Spotify Technology said that it plans to cut 6% of its workforce, or nearly 600 jobs, which adds to a glut that lays off in the technology sector as firms prepare for a possible recession.

The firm has stated that its chief content and advertising business officer, Dawn Ostroff, is leaving as part of a broader reorganization.

Spotify, which had 9,800 full-time workers as of September 30, said it expects to incur 35 million euros to 45 million euros in severance-related charges.

Shares in the firm increased 3.5% in premarket trading.

Spotify’s move arrives when tech companies are facing a demand downturn following two years of pandemic-driven growth, during which they are hiring aggressively. That leads the likes of Meta Platforms to Microsoft to shed thousands of jobs.

Sweden-based Spotify has seen advertisers pulling back on spending, which mirrors a trend seen at Meta and Google parent Alphabet, as rapid interest rate hikes and fallout from the Russia-Ukraine war pressure the economy.

The firm stated in October that it would be decreasing hiring for the rest of the year and into 2023. Its shares over halved in a dismal 2022 for tech stocks.