Spotify will lay off 600 people

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Spotify to fire 600 people

There goes a week without a tech industry giant announcing layoffs. Today is the turn of Spotify. The Swedish music-on-demand platform announced on Monday that it plans to cut 6% of its workforce, which would affect some 600 employees. ía founded by entrepreneur Daniel EkHe has informed that he will also carry It carried out a reorganization that has forced the resignation of who until now was its director of content and publicity, Dawn Ostroff. The announcement sent Spotify's shares up 3.5%, Reuters reports.

The music streaming giant has explained that it will allocate money to Spotify. between 35 and 45 million euros to carry out these dismissals. At the end of September, the company had about 9,800 full-time employees.

Industry turbulence

Although its job cuts are less than other heavyweights in the industry, Spotify has chosen to tighten its belt after seeing how its business has been affected by the reduction in employment. n in the investment of advertisers. This drop in advertising responds to growing inflation and the rise in interest rates, derived from a 2022 marked by the war between Russia and Ukraine.

These macroeconomic turbulences are the same ones that have led big tech companies to make big layoffs. Amazon has initiated a cutback that will affect sales. to more than 18,000 people; Google at 12,000, Meta, owner of Facebook and Instagram, at 11,000; Microsoft at 10,000; and the Twitter of Elon Musk, to more than 6,000.