Spotify has introduced right this moment (January 23) that it’s within the strategy of slashing over 500 jobs worldwide.

The agency confirmed in an SEC submitting that it’s lowering its worker base by “about 6% throughout the corporate”.

In the identical submitting, Spotify confirmed that Daybreak Ostroff, Chief Content material & Promoting Enterprise Officer, is to go away the corporate.

“Ms. Ostroff will assume the position of a senior advisor to the Firm to assist facilitate this transition,” stated Spotify.

Ostroff joined Spotify in 2018 as Chief Content material Officer.

Spotify additionally introduced that, as a part of its “reorganization”, Alex Norström, at the moment Chief Freemium Enterprise Officer, and Gustav Söderström, at the moment Chief Analysis & Growth Officer, will every tackle further obligations and be appointed as co-Presidents of the corporate.

On the finish of Q3 2022, in line with an investor presentation, Spotify employed 9,808 full-time staff globally. Six p.c of 9,808 is 588.

Spotify stated in its SEC submitting right this moment that the headcount discount would incur roughly EUR €35-45 million in severance-related expenses.

Information of Spotify’s lay-offs come after Alphabet, father or mother of Google, final week introduced that it was reducing 6% of its world workforce.

In a letter issued to employees right this moment, Spotify’s co-founder and CEO, Daniel Ek, wrote: “Over the subsequent a number of hours, one-on-one conversations will happen with all impacted staff”.

He added: “To supply some perspective on why we’re making this choice, in 2022, the expansion of Spotify’s OPEX outpaced our income development by 2X. That may have been unsustainable long-term in any local weather, however with a difficult macro setting, it could be much more tough to shut the hole.

“I take full accountability for the strikes that acquired us right here right this moment.”

Daniel Ek, Spotify

“As you might be nicely conscious, over the previous few months we’ve made a substantial effort to rein-in prices, but it surely merely hasn’t been sufficient. So whereas it’s clear this path is the suitable one for Spotify, it doesn’t make it any simpler — particularly as we take into consideration the numerous contributions these colleagues have made.”

“Like many different leaders, I hoped to maintain the sturdy tailwinds from the pandemic and believed that our broad world enterprise and decrease danger to the impression of a slowdown in adverts would insulate us. In hindsight, I used to be too formidable in investing forward of our income development.”

Mentioned Ek: “I take full accountability for the strikes that acquired us right here right this moment”.Music Enterprise Worldwide