According to Bloomberg, the world’s largest provider of streaming music, Spotify, intends to begin firing staff members as early as this week to reduce costs. In October, 38 employees from Spotify’s Gimlet Media and Parcast podcast studios were let go.
Massive layoffs have been announced by several tech behemoths recently, including Microsoft, Google, and Amazon. Spotify joins a host of other technology businesses, such as Amazon.com Inc. and Meta Platforms Inc., in announcing job cuts to reduce expenses. Approximately 9,800 people work for the company overall, according to its third-quarter results report.
During the epidemic, tech businesses increased their employee counts, but due to decreased advertising revenue and a bleak economic outlook, they were compelled to make reductions. Among the largest businesses to recently announce staff reductions were Amazon.com, Meta, and Microsoft Corp. Google parent Alphabet Inc. announced Friday that it will eliminate approximately 12,000 employees or more than 6% of its global workforce.
The anticipated cuts were not discussed by a spokesperson for Spotify.
Beginning in 2019, the corporation made a significant investment in podcasting. It invested more than $1 billion to purchase podcast networks, production tools, a hosting platform, and the rights to well-known programs like The Joe Rogan Experience and Armchair Expert.
However, the investments have put investors’ patience to the test. As investors questioned when they’d start seeing returns, shares fell 66% last year. In June, executives from Spotify predicted that its podcast division would turn a profit in the next one to two years.
