With the economy under strain from the Russian-Ukrainian war and rapid interest rate hikes, Spotify has seen advertisers cut down on spending, mirroring a trend seen at Meta and Google parent Alphabet Inc.
Spotify, the music streaming company, announced on Monday plans to cut 6 percent of its workforce, amid a downturn in the technology sector as the industry brace for a possible recession.
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Following two years of pandemic-driven growth during which they made aggressive hiring decisions, tech companies are now experiencing a drop in demand. This has caused companies like Meta Platforms Inc. and Microsoft Corp. to lay off thousands of employees.
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.
According to Spotify, severance-related expenses would range from 35 million euros ($38.06 million) to 45 million euros.
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 September 30.
(With inputs from agency)
First Published: Jan 23, 2023 6:25 PM IST
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