Spotify to trim 6% of workforce, content material head to depart By Reuters

(Reuters) -Music streaming agency Spotify Expertise SA (NYSE:) stated on Monday it plans to chop 6% of its workforce, or roughly 600 jobs, including to a glut of layoffs within the expertise sector as corporations put together for a potential recession.

The corporate additionally stated its chief content material and promoting enterprise officer, Daybreak Ostroff, will depart as a part of a broader reorganization.

Spotify, which had about 9,800 full-time workers as of Sept. 30, stated it expects to incur about 35 million euros ($38.06 million) to 45 million euros in severance-related expenses.

Shares within the firm rose 3.5% in premarket buying and selling.

Spotify’s transfer comes at a time when tech corporations are going through a requirement downturn after two years of pandemic-driven progress throughout which they’d employed aggressively. That has led the likes of Meta Platforms Inc (NASDAQ:) to Microsoft Corp (NASDAQ:) to shed hundreds of jobs.

Sweden-based Spotify has seen advertisers pull again on spending, mirroring a pattern seen at Meta and Google mother or father Alphabet (NASDAQ:) Inc, as fast rate of interest hikes and the fallout from the Russia-Ukraine battle stress the financial system.

The corporate had stated in October that it could decelerate hiring for the remainder of the yr and into 2023. Its shares greater than halved in a dismal 2022 for tech shares.

($1 = 0.9196 euros)