Spotify Technology SA plans to cut jobs as early as this week, joining a slew of tech companies ranging from Amazon.com Inc to Meta Platforms Inc in announcing layoffs to cut costs, according to people familiar with the matter. There is no specific regulation on the number of positions to be eliminated. Spotify laid off 38 employees from its Gimlet Media and Parcast podcast studios in October. The music streaming giant has about 9,800 employees, according to its third-quarter earnings report.
Tech companies have boosted headcounts during the pandemic but have been forced to lay off workers due to lower advertising revenue and a shaky economic outlook. Amazon.com, Meta and Microsoft Corporation. It is one of the largest companies to announce layoffs recently, while Google parent Alphabet Inc. said Friday it would cut about 12,000 jobs, more than 6% of its global workforce.
A Spotify spokesman declined to comment on the upcoming cuts.
The company started 2019 with a big commitment to podcasting. It has spent more than $1 billion acquiring podcast networks, authoring software, hosting services and the rights to popular shows such as The Joe Rogan Experience and Armchair Expert.
Still, the investments have tested the patience of investors. The company’s shares tumbled 66% last year as investors questioned when they would start seeing returns. Spotify executives said in June that its podcast business would be profitable within the next one to two years.