Audio streaming and media services provider Spotify is planning to trim its workforce as it seeks to curtail costs while navigating the economic downturn.
Although the number of jobs that would be eliminated has not been specified, which would likely be communicated in the coming weeks.
Spotify currently employs 9,800 employees, last year October the company announced job cuts from its Gimlet media and Parcast podcast studios, which saw it cancel about 11 original shows.
Investors King understands that the tech company went through a turbulent season last year, witnessing a 66 percent drop in share prices. Additionally, the company was reported to have failed to provide returns to investors.
According to research analysts Jeffrey Wlodarczak, he wrote “Many investors question whether Spotify will ever be able to generate significant lasting profitability, especially given the concentrated power of the music labels and competition not necessarily focused on generating profitability.
Spotify is the recent company that has been added to the long list of tech companies that have announced layoff plans.
Last week, search engine giant Google announced the layoff of 6 percent of its workforce which roughly accounted for 12,000 employees. Also, Facebook’s parent company Meta laid off 11,000 employees last year, while Twitter has so far laid off 70% of its workforce, as the company is now left with only 2,300 employees employee.
The list continues, as over 91 tech firms, which include Amazon, Coinbase and Salesforce have all fired more than 24,000 employees in the first 20 days of January this year alone.
These tech firms most of which admitted that they overhired during the pandemic period, disclose that the massive layoffs were necessary to help them navigate the global economic downturn.
According to a Crunchbase News tally, more than 46,000 workers in U.S.-based tech companies have been laid off in mass job cuts so far in 2023, and the year is just getting started.