Spotify workers have been alerted this morning to the information that the corporate could be slashing its workforce to offset increased prices in 2022.
“To offer some perspective on why we are making this decision, in 2022, the growth of Spotify’s OPEX outpaced our revenue growth by 2X,” CEO Daniel Ek wrote in a letter spelling out other organizational modifications going down. “That would have been unsustainable long-term in any climate, but with a challenging macro environment, it would be even more difficult to close the gap. As you are well aware, over the last few months we’ve made a considerable effort to rein-in costs, but it simply hasn’t been enough. So while it is clear this path is the right one for Spotify, it doesn’t make it any easier—especially as we think about the many contributions these colleagues have made.”
Over the previous three months, Amazon, Google, Microsoft, Salesforce and Meta have all made bulletins to chop workers from their respective ranks, with over 50,000 individuals affected. According to a report by Insider, a median 1,600 tech staff have been laid off on daily basis of 2023 to this point.
Writes CNN, “Spotify reported a loss of €228 million ($248 million) in its most recent financial quarter through September 30, as operating expenses shot up by 65%, according to a company presentation to investors.”
Spotify is at present trending on Twitter, with studies of the layoffs persevering with to disseminate particularly as workers take to the platform to announce their fates, as we’ve grow to be oddly accustomed to seeing this 12 months already.
For finish customers, this newest spherical of layoffs will doubtless not have an effect on their every day listening expertise. However, the general panorama of tech in the intervening time sheds some questions round how sustainable present methods in place will fare with international financial constraints.
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