Music streaming giant Spotify announced on Monday that it will be laying off 6% of its workforce as part of a company-wide restructuring effort. The number of employees affected by the layoffs was not disclosed, but Spotify currently employs around 9,800 people, according to its last earnings report.
In addition to the layoffs, Chief Content Officer Dawn Ostroff will be stepping down as part of the changes, according to a message from CEO Daniel Ek to employees. “These changes will allow me to get back to the part where I do my best work—spending more time working on the future of Spotify,” Ek stated.
The restructuring effort comes as Spotify continues to expand rapidly, particularly in the area of podcasting. The company has spent over a billion dollars on podcast networks, hosting services, and shows such as The Joe Rogan Experience. However, the company is now looking to shift its focus to its core product and engineering operations, and will be delegating its engineering and product work to the new Chief Product and Chief Business Officers.
Spotify has also announced that it will be providing five months of severance to affected employees, as well as accrued and unused vacation time, healthcare during the severance period, immigration support, and career support. The majority of Spotify’s employees are based in the United States, followed by Sweden and the United Kingdom.
The move comes as other tech companies such as Microsoft, Amazon, Meta, and Google have also announced layoffs in recent weeks, citing a downturn in the economy and a slowdown in hiring. Despite the recent layoffs, these companies have hired many more employees than they have let go from 2020 to 2022. Spotify itself had 6,617 employees in 2021 and 9,800 a year later, prior to the layoffs.
