Joining the list of MNCs who have announced mass-layoffs in regards to the pandemic tailwinds and the challenging economic environment, Spotify CEO Daniel Ek has revealed the company’s decision to let go of 6% of its total workforce.
Ek, in a note to the staff, apprised that the audio streaming platform will begin laying off 6% of its workforce.
As of now, Spotify has a total of 9,800 full time employees. The platform had previously laid off 38 people from its Fimlet Media and Parcast Podcast studios in October last year.
Falling prey to the company wide layoffs this time is Dawn Ostroff, Chief Content and Advertising Business Officer, Spotify, who in the views of Ek has helped grow the platform’s Podcast content by 40x and has driven significant innovation for the company.
In his note to the employees, Ek stated that similar to other leaders, he also hoped to sustain the pandemic tailwinds and believed that the broad global business and lower risk to the impact of a slowdown in ads would insulate the audio streaming platform.
“In hindsight, I was too ambitious in investing ahead of our revenue growth. And for this reason, today, we are reducing our employee base by about 6% across the company. I take full accountability for the moves that got us here today,” he said.
In the aftermath of this development, Spotify also went on to add that the employees who have fallen a victim to the layoffs will receive an average of five months of severance pay and that all employees would be eligible for outplacement services for two months.
Furthermore, the audio streaming platform also mentioned that the affected employees will also be paid for all accrued and unused vacation and that the company will continue to cover their healthcare benefits and costs for the next few months.