Staff reductions at music streaming giant Spotify may start this week

Spotify Technology S.A. is reportedly considering making cuts to staff as early as this week in an effort to save expenses, though the number of layoffs wasnt made clear.

It is worth mentioning that approximately 9,800 people work for the industry leader in music streaming, according to its third-quarter results report. However, along with podcast editorial staffers, 38 employees from Spotify's Gimlet Media and Parcast podcast studios were let go in October.

Spotify spokesperson did not acknowledge the cuts.

Interestingly, beginning in 2019, the corporation made a significant investment in podcasting. It invested more than USD 1 billion to purchase podcast networks, a hosting platform, the rights to well-known programmes like The Joe Rogan Experience & Armchair Expert, and other production tools.

However, the investments have put investors' resilience to the brink. The stock prices of the Swedish audio streaming firm fell 66% while investors wondered when they'd start seeing profits. In June, officials from Spotify predicted that its podcast division will turn a profit in the next one to two years.

Notably, tech giants have all lately announced workforce reductions. During the pandemic, tech businesses increased their employee count; nevertheless, in reaction to a bleak economic outlook, they were obliged to make reductions.

Jobs were lost by tech companies last year as a demand spike brought on by the pandemic quickly subsided, and cutbacks have continued this year as businesses try to control expenses to weather the slump.

In the past several weeks, Microsoft Corporation and Google LLC parent Alphabet Inc. both announced employment cuts of 10,000 and 12,000, respectively. More than 18,000 roles will be affected by Inc.'s round of layoffs.

Late last year, thousands of workers were fired off by other tech firms like Twitter Inc. and Facebook parent company Meta Platforms, Inc.

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