Not only Google and Microsoft: Spotify announced that it will lay off 600 employees - 6% of all employees at the Swedish streaming company.
"As you know, in recent months we made a considerable effort to curb expenses, but it was not enough," wrote the company's CEO, Daniel Ek, in a letter to employees. Spotify employs 9,800 people. "In retrospect, I was too ambitious by increasing investment before the increase in profits.
For this reason, we are cutting about 6% of the company's employees today.
I accept full responsibility for the moves that have brought us to this point."
Workers at Spotify headquarters, 2015. The company will pay the laid off five salaries and help with placement, photo: AFP
Spotify, a music and podcast platform, is the latest tech company to lay off workers to maintain its balance sheet amid growing fears of a recession.
Last week, Alphabet, the parent company of Google, laid off 12,000 workers, while Microsoft cut 10,000.
Other media companies have also joined in: Vox Media laid off 7,000 workers on Friday, and about a month ago The Washington Post told employees that layoffs were expected.
In any case, Spotify promised the fired employees compensation in the amount of five months' salary and health insurance, plus placement services.
The cost of compensation is estimated at 35 million to 45 million euros.
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