Spotify confirming within the last hour they're laying off 6%
of their workforce. That equates to roughly 600 people
. Ceo Daniel Ek said that operating costs for Spotify
had outpaced revenue growth by double now. The music
streaming service previously laid off about 40 workers back in
october. This follows other high profile tech layoffs throughout
the year from amazon google and meta. Let's take
a look at where shares with Spotify are currently at
over the last year. Like a lot of tech
companies down significantly down about 43% over the course of
the last year. Other news happening this morning,
according to an internal memo sent out there, Chief
Content Officer Don Austria, also departing the company as
well. Chloe Daniel X says that he's been doing
all of this because all of these cuts because the
company was too ambitious in scaling. At one particular
point, he's says in the memo to bring our
costs more in line, we've made the difficult but
necessary decision to reduce the number of employees. But
while I believe this is the right move for Spotify
, I understand that this might be viewed as a
shift in our culture, which he says is not
the case baker looking at these numbers, about 588
employees were will be affected by this decision. I
also want to mention Chief Content Officer Don Ostrow as
you mentioned, she, She was key in driving
their expansion into podcasts. You know, Daniel Ek
said that she helped Spotify grow the podcast content by
40 times. I should also mention all year in
2022, cutting back on the podcasting division to start
the year off. They close those studios, you
know those layoffs back in November that she mentioned those
40 or so employees that was podcasting as well.
So clearly they are sort of directing their strategy in
a different direction here.