Spotify is cutting off 6% of its workforce, equivalent to 600 employees, joining a growing list of big tech firms that are lowering costs amid persistent worries about the global economy.
“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,” Daniel Ek, Spotify’s chief executive, said in a note to employees on Monday.
As per regulatory filings, Spotify had more than 9,800 employees at the end of the third quarter (Q3).
Last week, Alphabet, Google’s parent company, laid off 12,000 employees, whereas Microsoft let go of 10,000.
The layoffs at Spotify, which is based in Stockholm, were largely due to macroeconomic challenges, Ek said in the note.
“I was too ambitious in investing ahead of our revenue growth,” he wrote.
The company is offering employees about five months of severance pay and health care in addition to career counseling services.
Spotify will incur EUR 35 million to EUR 45 million in severance costs, the company highlighted in a filing with the Securities and Exchange Commission.
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