Spotify is cutting 6% of its workforce, or around 600 jobs.
Why it matters
The job losses at Spotify follow similar layoffs at other tech giants in recent weeks, including Amazon, Google, Microsoft, and Salesforce. The tech industry is facing a demand downturn after two years of pandemic-powered growth during which it had hired aggressively.
What the papers say
The Guardian, The Times, The Verge, The Independent, and Al Jazeera all report on the story, with similar details and quotes from Spotify CEO Daniel Ek.
How we got here
Spotify's operating expenditure grew at twice the speed of its revenue last year, as the Stockholm-based company invested heavily in its podcast business. The company makes money from its premium service, which accounts for about 85% of its revenue, with the rest coming from its ad-supported service.
More on these topics
Spotify is a Swedish music streaming and media services provider. It is operated by Spotify AB, which is publicly traded in the NYSE through Luxembourg-domiciled holding company Spotify Technology S.A., itself a constituent of the Russell 1000 Index.
Daniel Ek is a Swedish billionaire entrepreneur and technologist. Ek is known for being the co-founder and CEO of music streaming service Spotify.
Dawn Ostroff is an American businessperson. She is the chief content officer and advertising business officer of Spotify and the former president of entertainment of The CW and president of Condé Nast Entertainment.
Microsoft Corporation is an American multinational technology company with headquarters in Redmond, Washington. It develops, manufactures, licenses, supports, and sells computer software, consumer electronics, personal computers, and related services.
Google LLC is an American multinational technology company that specializes in Internet-related services and products, which include online advertising technologies, a search engine, cloud computing, software, and hardware.