Spotify announced on Monday (23rd) that the company plans to lay off 6% of its workforce.

(Reuters file photo)

[Financial Channel/Comprehensive Report] The online music streaming platform Spotify announced on Monday (23rd) that the company plans to lay off 6% of its staff and will bear related expenses of up to nearly US$50 million (about NT$1.5 billion) in response to potential The tech industry has added another company to the recession-driven layoffs.

"Reuters" reported that the pandemic has driven growth, and the technology industry has been hiring aggressively during this period, and the technology industry is facing a decline in demand after the epidemic cools down. Microsoft) and others have laid off tens of thousands of employees.

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Spotify CEO Daniel Elk said in a blog post that the company had made considerable efforts to control costs over the past few months, but those actions were not enough, and announced that it would cut about 600 jobs.

Ike also admits that the investment is too ambitious until Spotify's revenue grows.

Spotify's operating expenses grew at twice the company's revenue last year, as the music streaming company aggressively poured money into its podcast business, which is more profitable for advertisers due to higher engagement rates. attractive.

At the same time, companies have scaled back ad spending on their platforms as rapid interest rate hikes and fallout from the Russo-Ukraine war weigh on the economy, a trend also seen in Meta and Google parent Alphabet.

As of September 30, Spotify had about 9,800 full-time employees.

The company is currently restructuring to cut costs and adapt to the worsening economic situation.

On Monday (23rd), Spotify’s stock price soared 5.8% at one point and closed up 2.07%.

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