Spotify will lay off 6 percent of its workforce, or 600 employees, it announced today (Jan. 23) in a release. Spotify’s operating expenses grew at twice the rate of its revenue growth in 2022, sparking the need for layoffs, the filing said.
“I take full accountability for the moves that got us here today,” CEO Daniel Ek said in the filing.
Layoffs continue to ripple across the tech sector as companies look to slash costs. Salesforce is laying off 8,000 employees, or 10 percent of staff, and Amazon is cutting 18,000 workers, or 1.3 percent, both companies announced this month. On Jan. 20, Google announced it would lay off 12,000 employees, 6 percent of its headcount. Salesforce, Amazon and Google all admitted to over-hiring during the pandemic.
Spotify’s chief content officer, Dawn Ostroff, will also depart the company, according to the release. The company will offer five months of severance pay to impacted employees.