Spotify CEO Daniel Ek recently revealed in a memo to staff that the company would be reducing its global workforce by 6%. The news of the layoffs arrived three months after 38 podcast employees lost their jobs at the company. In Spotify's Q3 earnings announcement, the company stated that it was reducing its forecasted hiring for the rest of 2022 and planned to "grow headcount more slowly in 2023". Along with the layoffs, Spotify has also implemented an immediate hiring freeze.
In addition to the job cuts, Ek announced an organizational restructuring that will see Alex Norström and Gustav Söderström take on additional responsibilities and be appointed as co-Presidents of the company. Dawn Ostroff, Chief Content & Advertising Business Officer, is exiting the company. Ek stated that the restructuring is an effort to drive more efficiency, control costs, and speed up decision-making.
The company's share price rose 2.1% following the announcement, but this hasn't stopped Spotify from reducing its workforce. This move is part of a wider trend of layoffs in the technology sector and parts of the music business.