- In a internal memo on Monday, Spotify (SPOT) revealed that it is laying off 6% of its global personnel as it struggles to survive in a bleak economic climate where both customers and marketers are cutting back on their spending.
- Around 600 Spotify employees will be affected by the changes, out of a total of 9,800. CEO Daniel Ek announced that impacted employees will be contacted for individual discussions and that severance-related costs could reach up to €45M.
- Dawn Ostroff, Spotify's head of content who oversaw securing exclusive podcasting agreements for the Obamas, Kim Kardashian, Prince Harry, and Meghan Markle, has left the company following the announcement of cuts.
Why it matters
In October, Spotify reported a tripled loss of 228 million euros for Q3 and attributed it to increased ad spend for expansion and higher staff growth. Meanwhile, last week, Google revealed 12,000 job cuts, following layoffs from Microsoft and Amazon.
