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Spotify joins the wave of layoffs, plans to reduce staff beginning this week: Report

In October, Spotify laid off 38 employees from its Gimlet Media and Parcast podcast studios and, in September, podcast editorial staff. According to its third-quarter earnings report, the music-streaming giant has approximately 9,800 employees. 

Spotify joins the wave of layoffs, plans to reduce staff beginning this week: Report - adt
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First Published Jan 23, 2023, 12:51 PM IST

Spotify Technology SA is planning layoffs this week to cut costs, sources said, without specifying the headcount, joining the wave of layoffs announced by the tech giant due to the shaky economic outlook, according to reports. 

In October, Spotify laid off 38 employees from its Gimlet Media and Parcast podcast studios and, in September, podcast editorial staff. According to its third-quarter earnings report, the music-streaming giant has approximately 9,800 employees. However, the Spotify spokesperson did not wish to comment on the job cuts.

In a recent announcement, companies like Meta Platforms Inc., Amazon.com Inc., Google parent Alphabet Inc. and Microsoft Corp announced layoffs. During the pandemic, tech companies increased their workforce but were forced to cut back due to a bleak economic outlook.

Beginning in 2019, the company made a significant investment in podcasting. It spent more than a billion dollars on podcast networks, creation software, a hosting service, and the rights to popular shows such as The Joe Rogan Experience and Armchair Expert.

Nonetheless, the investments have put investors' patience to the test. Last year, shares fell 66 per cent as investors questioned when they would start seeing returns. Spotify executives said in June that the company's podcast business would be profitable within the next one to two years.

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Also read: After Apple, Meta, Microsoft lays off nearly 1,000 employees across multiple divisions: Report

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