Spotify Will Cut About 6% of Jobs in Latest Tech Layoffs

(Bloomberg) —

Spotify Technology SA is planning to cut about 6% of its employees, joining a slew of technology companies from Amazon.com Inc. to Meta Platforms Inc. in announcing job cuts to lower costs.

The move was announced in a filing Monday morning, confirming reports from over the weekend that there would be job cuts. The music streaming giant has about 9,800 employees, according to its third-quarter earnings report. Spotify laid off 38 staff from its Gimlet Media and Parcast podcast studios in October.

Tech companies added to their headcounts during the pandemic but were forced to make reductions in response to diminished advertising revenue and a shaky economic outlook. Amazon, Meta and Microsoft Corp. were among the biggest companies to announce staff reductions recently, while Google parent Alphabet Inc. said Friday it will cut about 12,000 jobs, more than 6% of its global workforce.

Spotify said in the filing that Dawn Ostroff, chief content and advertising business officer, will leave the company as part of a broader reorganization. Alex Norström, currently chief freemium business officer, and Gustav Söderström, currently chief research & development officer, will each take on additional responsibilities as co-presidents of the company.

The shares rose 3.9% in early trading at 7:15 a.m. in New York. The stock had lost 58% of its value since the end of 2021.

Spotify made a massive commitment to podcasting beginning in 2019. It spent over a billion dollars on acquiring podcast networks, creation software, a hosting service and the rights to popular shows like The Joe Rogan Experience and Armchair Expert.

Still, the investments have tested investors’ patience. Shares tumbled last year as investors questioned when they’d begin seeing returns. Spotify executives said in June its podcast business would become profitable in the next one to two years.

(Updates with company confirmation starting in first paragraph.)

 

By Ashley Carman and Kamaron Leach
–With assistance from Richard Clough.

© 2023 Bloomberg L.P.

Follow us on social media for the latest updates in B2B!

Image

Latest

student success
The AI-Powered Edge in Education: How LearningClues Is Enabling Student Success with Co-founder and CEO Dr. Perry Samson
June 30, 2025

As AI continues to reshape education, institutions face a growing challenge in ensuring students succeed without compromising engagement or integrity. Today’s college students are often juggling jobs, family, and coursework, leading to limited study time and increased dropout risk. According to the National Center for Education Statistics, 40% of full-time undergraduates and 74% of…

Read More
AI Strategist
Why Enterprises Need an AI Strategist and Why It Should Be a Marketer
June 30, 2025

In this episode of The Marketing AI SparkCast, Aby Varma, founder of Spark Novus, a leading consultancy that partners with marketing leaders to adopt and scale AI responsibly and strategically, talks with Nicola Smith, Senior AI Programs Advisor at Southwest Airlines. They explore how enterprises can move beyond tool experimentation to embed AI into…

Read More
first 90 days
HealthSearch Partners’ Neill Marshall and Kurt Mosley Urge New CEOs to Listen First, Diagnose Early, and Lead with Purpose in the First 90 Days
June 30, 2025

CEO turnover across U.S. hospitals is accelerating. Hospitals and health systems announced 146 CEO changes in 2023—a 42 percent increase over the 103 exits recorded in 2022, according to a Challenger, Gray & Christmas report. As more leaders transition into new roles, the importance of making a good first impression has intensified. The early…

Read More
tech talent
The DisruptED World of Tech Talent with TEKsystems: Future-Proofing the Workforce Through Inclusive Hiring and Non-Traditional Education
June 27, 2025

In a workforce reshaped by automation, accelerated AI adoption, and persistent labor shortages, the demand for skilled tech talent has never been more urgent—or more difficult to meet. The traditional pipelines, namely college degrees and four-year institutions, are no longer producing enough candidates to meet the explosive growth in tech roles. With tech jobs…

Read More