Spotify Technology SA is planning layoffs as early as this week, according to people familiar with the plans, joining a slew of Amazon.com Inc tech companies. to Meta Platforms Inc. when announcing job cuts to cut costs.
The number of positions to be cut was not specified by the people. Spotify laid off 38 employees at its Gimlet Media and Parcast podcast studios in October. The music streaming giant has about 9,800 employees, according to its third-quarter earnings.
Tech companies have increased their workforces during the pandemic, but were forced to cut back in response to reduced ad revenues and shaky economic outlook. Amazon.com, Meta and Microsoft Corp. were among the largest companies to recently announce headcount cuts, while Google parent Alphabet Inc. Friday said it will cut about 12,000 jobs, more than 6 percent of the global workforce.
A Spotify spokesperson declined to comment on the impending cuts.
The company has focused heavily on podcasting as of 2019. It has spent more than a billion dollars acquiring podcast networks, creation software, a hosting service, and the rights to popular shows like The Joe Rogan Experience and Armchair Expert.
Still, the investments have tested investors’ patience. Stocks plummeted 66 percent last year as investors wondered when they would see returns. Spotify executives said in June that the podcast business would become profitable in the next one to two years.
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