Music streaming giant Spotify today announced it will cut 6 per cent of its workforce and pay approximately five months of severance to the impacted employees.
Sweden-based Spotify has seen advertisers pull back on spending, mirroring a trend seen at Meta and Google parent Alphabet Inc, as rapid interest rate hikes and the fallout from the Russia-Ukraine war pressure the economy.
“We will start with a baseline for all employees with the average employee receiving approximately 5 months of severance. This will be calculated based on local notice period requirements and employee tenure,” said CEO Daniel Ek in a note to all Spotify employees.
The company will also be paying for all remaining PTO (Paid Time Off) and continue to cover healthcare for employees during their severance period.
All the impacted employees will be eligible for outplacement services for two months, said Mr Ek.
“For employees whose immigration status is connected with their employment, HRBPs are working with each impacted individual in concert with our mobility team,” he added.
The company said its chief content and advertising business officer Dawn Ostroff will also depart.
Spotify laid off 38 staff from its Gimlet Media and Parcast podcast studios in October. The company has about 9,800 employees, according to its third-quarter earnings report.
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