Spotify, a Swedish company that streams music online, says it will lay off 6% of its roughly 10,000 employees. The company says it needs to improve its efficiency.
Daniel Ek, the company’s boss, wrote on the company’s blog, “In retrospect, I was too ambitious when I invested before our revenue growth.”
Even though Spotify is very popular in the online music market, it has never had a full-year net profit.
It comes after Microsoft and Alphabet both said they were losing money last week.
Alphabet, which owns Google, said that it would cut 12,000 jobs, and Microsoft said that up to 10,000 jobs would be cut.
“I take full responsibility for the steps we took to get where we are now,” Mr. Ek said.
The company also said that Dawn Ostroff, who was in charge of the content and advertising business, would leave as part of a larger reorganization.
Spent a lot of money.
Last year, Spotify had about 9,800 full-time workers, and the company said it expected to pay at least €35 million (£30 million) in severance-related costs.
The Swedish business, which is listed on the New York Stock Exchange, has invested a lot of money in developing new markets and, more recently, creating exclusive content like podcasts to aid in its expansion.
In October, the company said it would hire fewer for the rest of the year and into 2023.
Spotify’s announcement comes at a time when tech companies are facing a slowdown after two years of hiring a lot of people to help them grow because of a pandemic.
In the past few weeks, hundreds of people, including some of the biggest names in the field, have said they are leaving their jobs.
Amazon said at the beginning of this year that it would be firing more than 18,000 people because of “the unpredictable economy” and the fact that it had quickly hired a lot of people during the pandemic.
Meta said in November that it would lay off 13% of its workers, or 11,000 people.