New Delhi: Music streaming giant Spotify on Monday announced laying off 6 per cent of its workforce or around 600 employees globally.
Daniel Ek, CEO of the Swedish company, announced in a memo that he was very ambitious in investing ahead of their revenue growth.
“And for that reason, today, we are reducing our employee base by approximately 6 percent across the company. I take full responsibility for the steps that brought us here.”
The company had more than 9,800 full-time employees as of the company’s last earnings report.
One acknowledged, “Like many other leaders, I expected to maintain a strong tailwind from the pandemic and believed that our broader global business and less exposure to the impact of the recession in ads would propel us.”
The company said an average employee will receive approximately 5 months of severance, which will be calculated based on local notice period requirements and employee tenure.
The CEO added, “All accrued and unused leave will be paid to any departing employee. We will continue to cover health care for employees during their term.”
All employees will be eligible for displacement services for 2 months.
In October last year, Spotify reportedly spun off 11 original podcasts from its in-house studios as a part of cost-cutting and layoffs, which took place recently.
Less than 5 percent of the company’s employees on the original podcast were either laid off or reassigned to the new show.