Spotify to slow its recruiting by 25% due to economic uncertainty
Spotify has joined a growing list of companies that have reduced hiring or announced layoffs in response to rising inflation and the fallout from the Ukraine crisis.
FollowSpotify Technology SA would cut its recruiting by 25 per cent, following a source familiar with the contents of a companywide email, making it the latest tech company to cut costs amid economic uncertainties.
Spotify CEO Daniel Ek informed employees via email on Wednesday that the world's largest on-demand audio service would continue to hire but would slow the pace "and be a bit more prudent" in the coming quarters. According to the company, it employs approximately 8,230 people worldwide.
Shares of the Stockholm-based company reached a session high shortly after the news was reported by Reuters and other media outlets and were last up 7.1 per cent.
Earlier this month, Spotify Chief Financial Officer Paul Vogel informed the investment community that the company was keeping an eye on the global economy. "We are keeping a close eye on the situation and evaluating our headcount growth in the near term," he said, although there had yet to be a material impact on business.
Spotify gave investors an optimistic assessment of its business at the time, predicting that its investments in podcasting and audiobooks would fuel growth over the next decade.
Spotify has joined a growing list of companies that have reduced hiring or announced layoffs in response to rising inflation and the fallout from the Ukraine crisis. Coinbase (COIN.O) announced that it would reduce its workforce by 18 per cent, or approximately 1,000 people. The hiring of ride-hailing companies Uber (UBER.N) and Lyft Inc (LYFT.O) has also slowed the pace of hiring.
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