In an effort to slash expenses, a number of technological businesses, including Amazon.com and Meta, have announced job losses. Spotify Technology is the latest. This week, it is reportedly intending to lay off workers.
Spotify Technology SA , plans layoffs as soon as this week
The third quarter earnings report for Spotify indicates that there are roughly 9,800 employees. 38 employees from Spotify’s Gimlet Media and Parcast podcast studios were let go in October of last year. However, it wasn’t stated how many positions it will destroy.
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Tech companies added to their headcounts during pandemic
During the pandemic, tech companies increased their employee counts, but due to decreased advertising revenue and a bleak economic outlook, they were compelled to make reductions. Among the largest businesses to recently announce staff reductions were Amazon.com, Meta, and Microsoft Corp. Google parent Alphabet Inc. announced Friday that it will eliminate approximately 12,000 employees, or more than 6% of its global workforce.
The anticipated cuts were not discussed by a spokeswoman for Spotify.
Spotify made massive commitment to podcasting
Beginning in 2019, the corporation made a significant investment in podcasting. It invested more than $1 billion to purchase podcast networks, production tools, a hosting platform, and the rights to well-known programmes like The Joe Rogan Experience and Armchair Expert.
However, the investments have put investors’ patience to the test. As investors questioned when they’d start seeing returns, shares fell 66% last year. In June, executives from Spotify predicted that its podcast division will turn a profit in the next one to two years.
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