Spotify latest tech company to announce layoffs by cutting 6% of workforce

Music streaming firm Spotify Technology plans to cut six per cent of its workforce, the company said on Monday, a move that will add to a glut of layoffs in the technology sector as companies prepare for a possible recession.

Tech companies are facing a demand downturn after two years of pandemic-driven growth during which they had hired aggressively. That has led the likes of Meta Platforms Inc. to Microsoft Corp. to shed thousands of jobs.

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

Spotify said it will incur about 35 million euros (US$38.06 million) to 45 million euros in severance-related charges.

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The company said its chief content and advertising business officer Dawn Ostroff will also depart.

Spotify had about 9,800 full-time employees, as of Sept. 30.