Spotify Confirms Layoffs, 6% Reduction In Workforce as Inflation Hits Services Sector – EDM.com

Spotify is the latest company to announce a reduction in force after layoffs in the tech sector hit a new local high in January.

The streaming giant is hardly alone as its big tech counterparts—including Google, Amazon and Meta—have all announced layoffs amid a tough economic backdrop, one plagued by stickier than expected inflation and rapidly rising interest rates. The Swedish company confirmed a 6% reduction of its workforce, the equivalent of roughly 600 jobs, Reuters reports.

“While we have made great progress in improving speed in the last few years, we haven’t focused as much on improving efficiency,” Spotify CEO Daniel Ek penned on the company’s official blog. “We still spend far too much time syncing on slightly different strategies, which slows us down. And in a challenging economic environment, efficiency takes on greater importance. So, in an effort to drive more efficiency, control costs, and speed up decision- making, I have decided to restructure our organization.”

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