Spotify to cut six per cent of workforce

Spotify is set to to cut 6,000 jobs, or six per cent of its workforce, adding to the massive layoffs in the tech space over recent weeks

The Stockholm-based company had benefited from pandemic lockdowns because more people were looking to be entertainment, when they were stuck at home.

Ek indicated that the company’s business model – which had long focused on growth – had to evolve, and bring costs in line.

“To bring our costs more in line, we’ve made the difficult but necessary decision to reduce our number of employees,” Ek wrote.

Spotify made “considerable effort” to rein in the costs over the past few months, “but it simply hasn’t been enough,” he said.

Spotify saw businesses pull back on advertising as factors including soaring interest rates pressured global demand.

Layoffs have since picked up steam over the past few weeks, with Alphabet, Microsoft and Amazon axing jobs recently.