Spotify lays off 6% of workforce, loses content chief

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Following layoffs at Google, Microsoft, Amazon and most just lately Apple retail, Spotify has introduced redundancies because it “essentially” adjustments the way it operates.

The announcement got here in a blog post by Spotify CEO Daniel Ek. Initially, Ek says within the weblog submit that, “personally, these adjustments will permit me to get again to the half the place I do my greatest work.”

Ek then Daybreak Ostroff has determined to go away. “Due to her efforts, Spotify grew our podcast content material by 40x,” he wrote, “drove vital innovation within the medium and have become the main music and podcast service in lots of markets.”

“That brings me to the second replace,” he continues. “As a part of this effort, and to carry our prices extra in line, we have made the troublesome however crucial determination to cut back our variety of staff.”

“To supply some perspective on why we’re making this determination, in 2022, the expansion of Spotify’s OPEX outpaced our income development by 2X,” wrote Ek. “That will have been unsustainable long-term in any local weather, however with a difficult macro setting, it could be much more troublesome to shut the hole.”

“As you’re effectively conscious, over the previous couple of months we have made a substantial effort to rein-in prices, but it surely merely hasn’t been sufficient,” he continued.

The workers affected are to obtain on common 5 months of severance pay, plus pay for any accrued or unused holidays. They will even proceed to obtain healthcare advantages throughout their severance interval.

Spotify is essentially the most profitable music streaming service. Not too long ago, it and a consortium of different corporations wrote to the EU asking for “decisive motion” towards alleged antitrust habits from Apple Music.