CEO of Spotify takes full responsibility for Laying off 600 employees
- ByStartupStory | January 24, 2023
Music streaming giant Spotify announced on Monday that it will be cutting 6% of its workforce, or about 600 employees, globally.The company’s CEO, Daniel Ek, acknowledged that the company had been too ambitious in investing ahead of revenue growth.
Daniel Ek stated “And for this reason, today, we are reducing our employee base by about 6 per cent across the company. I take full accountability for the moves that got us here.Like many other leaders, I hoped to sustain the strong tailwinds from the pandemic and believed that our broad global business and lower risk to the impact of a slowdown in ads would insulate us”
The company will be providing severance pay, healthcare coverage, and outplacement services for affected employees. It mentioned that an average employee will even receive nearly 5 months of severance. The severance will be calculated based on local notice period requirements and employee tenure. Moreover, the company also added that all employees will be eligible for outplacement services for 2 months.
This announcement comes after Spotify shut down 11 original podcasts from its in-house studios as a part of cost-cutting measures in October 2020.
All accrued and unused vacation will be paid out to any departing employee. We will continue to cover healthcare for employees during their severance period,” said the CEO.
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