Stockholm-based Spotify may cut down its workforce as a cost-cutting measure. Multiple media sources have reported that the tech giant may announce the layoffs this week.
According to the company’s third-quarter earnings report, it currently has a headcount of 9,800 employees. Since 2019, it has spent $1 billion in strategic business acquisitions of various audio broadcasting companies.
In October 2022, the company laid off 38 employees from Gimlet Media and Parcast podcast studio. It has not revealed any numbers for the imminent layoff and a spokesperson refused to comment to Mint on the possible job losses.
The tech company underwent a rough patch last year, witnessing a 66 per cent drop in share prices. Additionally, it has reportedly been failing to provide returns to investors. The board administration is expecting a profitable podcast business in the next one and two years.
The hardships in the global tech sector have been a subject of discussion since 2022. This year started with Amazon hitting the headlines after announcing 18,000 layoffs globally. The e-commerce giant was followed by Google’s parent, Alphabet Inc, which announced 10,000 job cuts and Microsoft, which revealed its plans to fire 12,000 jobs.
According to a Mint report, nearly 1,50,000 employees lost their jobs in the global tech space. Big players were seen to reduce their employee numbers. For instance, Meta, the parent of Facebook, fired 11,000 of its staff. After the acrimonious takeover by the maverick billionaire Elon Musk, Twitter laid off nearly 7,500 employees.