Spotify Lays Off 6 Percent of Workforce

Spotify confirming within the last hour they're laying off 6% of their workforce. That equates to roughly 600 people. Ceo Daniel Ek said that operating costs for Spotify had outpaced revenue growth by double now. The music streaming service previously laid off about 40 workers back in october. This follows other high profile tech layoffs throughout the year from amazon google and meta. Let's take a look where shares with Spotify are currently at over the last year, like a lot of tech companies down significantly down about 43% over the course of the last year. Other news happening this morning, according to an internal memo sent out there, Chief content Officer Don Austria, also departing the company as well. Chloe Daniel X says that he's been doing all of this because all of these cuts because the company was too ambitious in scaling. At one particular point, he's says in the memo to bring our costs more in line, we've made the difficult but necessary decision to reduce the number of employees. But while I believe this is the right move for Spotify, I understand that this might be viewed as a shift in our culture, which he says is not the case baker looking at these numbers, about 588 employees were will be affected by this decision. I also want to mention chief Content officer Don Ostrov as you mentioned, she, She was key in driving their expansion into podcasts. You know, Daniel Ek said that she helped Spotify grow the podcast content by 40 times. I should also mention all year in 2022, cutting back on the podcasting division to start the year off. They close those studios, you know those layoffs back in November that she mentioned those 40 or so employees that was podcasting as well. So clearly they are sort of directing their strategy in a different direction here.