IG news Update,
Music streaming service Spotify said Monday it is cutting six percent of its global workforce, another tech company resorting to layoffs as the economic outlook weakens in the aftermath of the pandemic.
CEO Daniel Eck announced the restructuring in a message to employees that was also posted online.
“As part of the reform involving a management reshuffle,” one wrote, “and to further bring down our costs, we have made the difficult but necessary decision to reduce our workforce.”
Big tech companies such as Amazon, Microsoft and Google announced tens of thousands of job cuts this month as the industry takes a hit during the COVID-19 pandemic.
One said that Stockholm-based Spotify was no different. The company’s operating costs last year were twice its revenue growth, a gap that would be “unsustainable long-term” in any economic environment, but is even more difficult to close with “a challenging macro environment.”
Spotify had benefited from the pandemic lockdown as more people sought entertainment while staying at home.
That’s why the company is cutting about six percent of its global workforce, without any specific number of job losses, he said. Spotify has just 10,000 employees worldwide, which means 600 jobs are being cut.
One said, “I take full responsibility for the steps that brought us here today.”