New Delhi: Music streaming giant Spotify announced on Monday that it will cut 6% of its workforce, or about 600 employees, globally.
Daniel Ek, CEO of the Swedish company, announced in a memo that investing in advance of revenue growth is too ambitious.
“That’s why we’re reducing our employee base by about 6% across the company today. I take full responsibility for the move that got us here,” he said.
As of the last earnings report, the company had over 9,800 full-time employees.
“Like many other leaders, I want to maintain a strong tailwind from the pandemic and believe our broader global business and reduced exposure to the impact of the slowdown in advertising will isolate us. was
According to the company, the average employee receives about five months of severance pay calculated based on local notice period requirements and the employee’s tenure.
“All accrued unused leave will be paid to the retiring employee. We will continue to cover the employee’s medical expenses during the retirement period,” said the CEO.
All employees are eligible for two months of outplacement services.
Last October, Spotify reportedly shut down 11 original podcasts from its in-house studios as part of recent cost and staff cuts.
Fewer than 5% of staff at original podcast companies were laid off or reassigned to new shows.