According to persons acquainted with the preparations, Spotify Technology SA is considering layoffs as soon as this week in order to save expenses.
The number of job cutbacks was not mentioned. Spotify let off 38 employees from its Gimlet Media and Parcast podcast studios in October, as well as podcast editorial staff in September. According to its third-quarter financial report, the music streaming company employs around 9,800 people.
Meta Platforms Inc., Amazon.com Inc., Google parent Alphabet Inc., and Microsoft Corp. have all lately announced layoffs. During the epidemic, IT businesses increased their workforce, but were obliged to reduce it in reaction to a bleak economic outlook.
A Spotify spokeswoman declined to comment on the impending cutbacks.
Beginning in 2019, the corporation made a significant investment to podcasting.
It invested nearly a billion dollars to acquire podcast networks, creation tools, a hosting service, and the rights to popular shows including The Joe Rogan Experience and Armchair Expert.
Nonetheless, the investments have put investors to the test. Last year, shares fell 66% as investors questioned when they would get a return. Spotify executives stated in June that their podcast business will be profitable over the next one to two years.
