Spotify, a music streaming giant has announced to slash 6 per cent of its workforce which means, the company is set to remove around 600 staffers, across the world.
Daniel Ek, CEO of the Swedish company has announced in a memo that he was too ambitious in investing ahead of their revenue growth.
ALSO READ: Microsoft infuses billions of dollars in ChatGPT developer OpenAI
"And for this reason, today, we are reducing our employee base by about 6 per cent across the company. I take full accountability for the moves that got us here," he said.
It was stated that the company had over 9,800 full-time employees as of its last earnings report.
ALSO READ: Twitter Community Notes reaches 4 more countries
"Like many other leaders, I hoped to sustain the strong tailwinds from the pandemic and believed that our broad global business and lower risk to the impact of a slowdown in ads would insulate us," Ek admitted.
The company said that an average employee of Spotify will get a maximum of 5 months of severance that will be calculated based on local notice period requirements and employee tenure.
Daniel said, "All accrued and unused vacation will be paid out to any departing employee. We will continue to cover healthcare for employees during their severance period."
All employees will be eligible for outplacement services for 2 months.
In October last year, Spotify reportedly shut down 11 original podcasts from its in-house studios, as a part of cost-cutting and now the company has been laying off the workforce recently. Less than 5 per cent of the company's staff on original podcasts were either laid off or reassigned to new shows.
Inputs from IANS
