Spotifyprobably the most popular music streaming platform in the world, has announced that it has decided to cut 17% of its staffequal to approximately 1,600 employees.
The decision was motivated by the need to reduce expenses and increase profitswhich in recent years have been put under pressure by the global economic crisis and competition in the technology sector.
Spotify: wave of layoffs coming
Daniel Ekthe Swedish entrepreneur who founded and runs Spotify, said the company has invested heavily between 2020 and 2021. This is the pandemic period, which had increased the demand for digital services. In short, a period in which technology had taken on a fundamental role in people’s lives.
However, as the Guardian reiterates, those investments proved unsustainable in the long term, especially after the restrictions ended and revenues fell. A mini crisis fueled by decline in advertising revenuewhich still represent the largest source of revenue for the streaming platform.
Spotify is not the only big tech giant to have announced restructuring measures and mass layoffs. In recent months, many other companies in the sector (such as Meta, Google and Microsoft) have had to face the difficulties caused by the economic crisis and increasingly fierce competition.