In an effort to reduce expenses, Spotify Technology, a significant tech business, plans to lay off employees. As early as this week, the corporation might announce the layoffs, according to a Bloomberg story.
The firm let off 38 employees from its Gimlet Media and Parcast podcast studios in October, along with podcast editing staff in September. It is currently intending to lay off further employees, but it is not clear how many positions would be eliminated.
According to Spotify's third-quarter financial report, the company currently employs around 9,800 people.
Additionally, Spotify has spent over a billion dollars on acquisitions and the rights to famous shows since 2019, but the investments have failed to yield a return, and the shares fell 66% last year. In June, executives from Spotify predicted that within one to two years, the podcast industry would turn a profit.
The tech industry has seen layoffs before, and Spotify may not even be the last. Even some of the most profitable industrial giants are reducing their personnel in order to save spending. Google said late last week that it is cutting off 12,000 workers, or 6% of its workforce, across all regions. Additionally, Amazon disclosed that it would be laying off 18,000 workers.
11,000 staff were also let go by Meta, the organisation that owns the social networking site Facebook, in November of last year. That represented 13% of the company's whole workforce across all locations. One of the first businesses to begin mass layoffs was Twitter. Musk recently disclosed that there are now only 2,300 individuals working at Twitter, which is 70% less than there were prior to Musk's acquisition. Before layoffs, Twitter employed 7,500 people.