New Delhi: Music streaming big Spotify on Monday introduced to slash 6 per cent of its workforce, or about 600 staffers, globally.
The Swedish firm’s CEO Daniel Ek introduced in a memo that he was too bold in investing forward of their income progress.
“And for this reason, today, we are reducing our employee base by about 6 per cent across the company. I take full accountability for the moves that got us here,” he mentioned.
The corporate had simply over 9,800 full time staff as of its final earnings report.
“Like many other leaders, I hoped to sustain the strong tailwinds from the pandemic and believed that our broad global business and lower risk to the impact of a slowdown in ads would insulate us,” Ek admitted.
The corporate mentioned a median worker will obtain roughly 5 months of severance that will probably be calculated primarily based on native discover interval necessities and worker tenure.
“All accrued and unused vacation will be paid out to any departing employee. We will continue to cover healthcare for employees during their severance period,” mentioned the CEO.
All staff will probably be eligible for outplacement companies for two months.
In October final yr, Spotify reportedly shut down 11 unique podcasts from its in-house studios, as part of cost-cutting and layoffs which just lately passed off.
Lower than 5 per cent of the corporate’s employees on unique podcasts had been both laid off or reassigned to new exhibits.