Spotify plans to cut 6% of its workforce, which will mean laying off about 600 people out of its 9,800 employees, the company itself has confirmed in a statement, which has indicated that Dawn Ostroff, head of content and advertising , will also leave the company.
The job cut comes after the 66% plunge in the shares of the Scandinavian company last year, after investor doubts about the platform’s shift to the podcast format.
In this way, the Swedish music streaming company will join other large technology companies that have announced layoffs such as Amazon, Meta, Microsoft or Alphabet, the parent company of Google.
Among the reasons that explain the crisis in the sector are the increase in inflation and the rise in rates, or the end of the technological ‘boom’ of entertainment platforms experienced during the pandemic.