According to sources familiar with the matter, Spotify Technology SA is considering layoffs as early as this week, joining a wave of technology businesses from Amazon.com Inc. to Meta Platforms Inc. in announcing job cuts to reduce expenses. The number of eliminated posts was not indicated by the names. In October, 38 employees from Spotify’s Gimlet Media and Parcast podcast studios were laid off. According to its third-quarter financial report, the music streaming business has around 9,800 employees.
During the epidemic, tech businesses increased their headcounts but were compelled to make reductions due to declining advertising revenue and an uncertain economic outlook. Amazon.com, Meta, and Microsoft Corp. were among the largest businesses to announce staff reductions recently, while Alphabet Inc., the parent company of Google, announced on Friday that it would eliminate more than 6% of its global workforce or over 12,000 employees.
A Spotify representative refused to comment on the impending cuts.
Beginning in 2019, the corporation made a substantial commitment to podcasting. It spent more than a billion dollars purchasing podcast networks, creation tools, a hosting service, and the rights to popular shows such as The Joe Rogan Experience and Armchair Expert.
Nonetheless, the investments have challenged the patience of investors. Last year, shares fell 66% as investors questioned when they would begin to see returns. In June, Spotify executives predicted that the company’s podcast business would become profitable within one to two years.