Spotify has confirmed its decision to cut the company’s global work force by six perfect.
The streaming giant intends to lay off around 600 people in the move, which was seemingly confirmed by founder and CEO Daniel Ek to staff this morning (January 23rd).
The Verge reports that the move is part of a company-wide overhaul, intended at delivering an organisational restructure which would boost efficiency and minimising costs. Alongside some 600 lay offs, it is believed that Dawn Ostroff – head of content and ads at Spotify – is also leaving the company.
Daniel Ek wrote to staff: “As part of this effort, and to bring our costs more in line, we’ve made the difficult but necessary decision to reduce our number of employees.”
He added: “Like many other leaders, I hoped to sustain the strong tailwinds from the pandemic and believed that our broad global business and lower risk to the impact of a slowdown in ads would insulate us. In hindsight, I was too ambitious in investing ahead of our revenue growth.”
According to Spotify’s last earnings report, the company has around 9,800 full-time employees at the time of writing.
The move is part of a broader crunch across the tech sector – Google also intend to lay off around 6% of its work force.