The company’s CEO has admitted it made miscalculations in hopes of “supporting the strong tailwind of the pandemic”.
Layoffs from big tech continue like a steady stream. Was it Microsoft last week that announced its plans to terminate the contract of some 10,000 employees (less than 5% of its workforce), now it is Spotify that has announced its plans to terminate approximately 6% of its workforce this week. fire. This reduction means the termination of the contract of about 600 employees, taking into account that the online music platform has about 9,800 employees.
The layoffs of the Swedish technology company were communicated by the company’s own CEO, Daniel EK, through a letter addressed to all employees and published on the company’s website, acknowledging that he was “too ambitious to invest before growth from Spotify.
And it is that in a letter in which, despite everything, he assures that “the company continues to function well in general”, he acknowledges miscalculations related to the management of Spotify and apologizes, like leaders of other companies, that it “expected the strong tailwinds from the pandemic and believed our broad global operations and lower risk of the impact of an advertising slowdown would isolate us.”
However, since last year, the situation of this platform has not had its best moment. Specifically, the company’s stock plummeted 66% in 2022 after investors expressed doubts about the platform’s shift to the podcast format.
For example, the Swedish music streaming company joins other major technology companies that have announced layoffs, such as Amazon, Meta, Microsoft or Alphabet, Google’s parent company. Among the reasons explaining the crisis in the sector are the rise in inflation and the rise in rates, or the end of the technological “boom” of entertainment platforms during the pandemic.
Source: La Verdad
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
