Spotify has announced a major purge of its staff. After the recent mass layoffs at Twitter, Google and Microsoft, here’s another tech giant cutting staff. The main reason for the layoffs is said to be the overinvestment in recent years, which, however, has not been very successful. In fact, Spotify stocks have fallen to their lowest levels since they were floated.
600 people will be affected
Spotify plans to lay off a full 6% of its workforce. Spotify employs over 9,000 people worldwide. The move will affect just over 600 employees. This unfortunate news with and explanation was sent to the employees by CEO Daniel Ek.
Spotify to pay severance for nearly half a year
Affected Spotify employees will be invited to individual interviews in the coming days. Depending on the length of employment, the departing employees will receive a severance payment of an average of five months’ salary. Spotify will also offer career support, for example.
Spotify joins the ranks of tech giants that have announced major layoffs today. Microsoft is laying off 10,000 people, Google plans to cut 12,000 jobs. Amazon, Meta and Salesforce have also resorted to layoffs. Unfortunately, Spotify is also joining this unfortunate trend.