Internet: Swedish Spotify will cut 6% of its workforce
Daniel Ek, boss of Spotify (our photo), explains that he was "too ambitious" in his investment choices.
AFP/Don Emmert
Text by: RFI Follow
1 min
A new haircut from a big name on the internet.
Swedish Spotify, the world's number one audio platform, is cutting 6% of its workforce.
It's about saving money.
Advertising
Read more
“
During the next few hours, individual interviews will take place with the employees concerned
,” said the general manager and co-founder of the flagship of online music, Daniel Ek, in an online message.
After Amazon, Microsoft or Google, it's Spotify's turn to announce layoffs: 600 people will have to leave, out of around 9,800 employees in the company.
This is the largest layoff plan of the Swedish group listed on the New York Stock Exchange.
“
Too ambitious
”
Daniel Ek cites profitability problems and a difficult macro-economic context to justify these workforce reductions.
He also explains that he was “
too ambitious
” in his choice of investments, which are increasing much faster than his turnover.
Indeed, despite a large number of subscribers - nearly half a billion users - and a certain lead over competitors such as Apple Music, Spotify has been steadily posting losses for several years.
Thus, in the third quarter of last year, the group recorded a net loss of 166 million euros.
Investors welcome
To reconnect with profits, Spotify has therefore decided, like the other giants of the net, to reduce its payroll.
The announcement was also welcomed by investors.
The company's action, struggling for a year, rebounded on Wall Street on Monday.
►Also read
: The Spotify streaming platform put under pressure by singer Neil Young is reviewing its copy
(
January 31, 2022
)
Newsletter
Receive all the international news directly in your mailbox
I subscribe
Follow all the international news by downloading the RFI application
Internet
Musics
finance
Employment and Labor
Social issues
Sweden
Social networks
Culture