Spotify plans to join layoffs headcount
- ByStartupStory | January 23, 2023
According to people familiar with the plans, Spotify Technology SA is planning layoffs as soon as this week. It is joining a slew of technology companies, from Amazon.com Inc. to Meta Platforms Inc., in announcing job cuts to cut costs.
The people did not specify the number of positions to be eliminated. In October, Spotify laid off 38 employees from its Gimlet Media and Parcast podcast studios. According to its third-quarter earnings report, the music streaming behemoth employs approximately 9,800 people.
Beginning in 2019, the company made a significant investment in podcasting. It spent more than a billion dollars on podcast networks, creation software, a hosting service, and the rights to popular shows such as The Joe Rogan Experience and Armchair Expert.
Nonetheless, the investments have put investors’ patience to the test. Last year, shares fell 66% as investors questioned when they would start seeing returns. Spotify executives stated in June that the company’s podcast business would be profitable within the next one to two years.
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