Spotify plans to cut personnel starting this week, joining the tsunami of layoffs
Business

Spotify joins the wave of layoffs, plans to reduce staff beginning this week

Spotify plans to cut personnel starting this week, joining the tsunami of layoffs
Spotify

38 employees from Spotify’s Gimlet Media and Parcast podcast studios, as well as the podcast editorial crew, were let go in October. The massive music streaming company employs about 9,800 people, according to its third-quarter financial report.

According to reports, Spotify Technology SA is preparing layoffs this week in order to reduce expenses. This will add to the wave of layoffs announced by the internet giant due to the uncertain economic environment.

38 employees from Spotify’s Gimlet Media and Parcast podcast studios, as well as the podcast editorial crew, were let go in October. The massive music streaming company employs about 9,800 people, according to its third-quarter financial report. The representative for Spotify, meanwhile, declined to comment on the layoffs.

Companies including Meta Platforms Inc., Amazon.com Inc., Alphabet Inc., the parent company of Google, and Microsoft Corp. have announced layoffs. Tech businesses expanded during the pandemic but were compelled to reduce staff as the economy took a turn for the worst.

The business started investing heavily in podcasting in 2019. It invested almost $1 billion in podcast networks, tools for creating them, hosting services, and the rights to well-known programmes including The Joe Rogan Experience and Armchair Expert.

However, the investments have tried the patience of investors. As investors questioned when they would start generating returns, shares plunged 66% last year. In June, executives from Spotify predicted that the company’s podcast division will turn a profit within the next one to two years.

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