Spotify to lay off 6% of all staff as tech sector retrenchment continues

Spotify, the world’s largest streaming music service, announced Tuesday that it will be laying off 6% of its global workforce as part of a restructuring effort. The move is part of a broader trend of tech sector retrenchment, as companies across the industry grapple with the economic fallout of the coronavirus pandemic.

The layoffs, which will affect about 1,500 employees, come as Spotify continues to struggle with slowing growth and rising costs. The company, which had been valued at more than $30 billion as recently as 2018, has seen its stock price drop more than 40% since its peak.

In a statement, Spotify CEO Daniel Ek said that the layoffs were necessary to ensure the company’s long-term success. “We are making these changes to ensure Spotify is positioned to not only weather the current turbulence, but also be well-positioned to capitalize on the many opportunities we see in the market,” he said.

The move comes as tech companies around the world are cutting back on spending and staff in response to the pandemic. Companies like Airbnb, Uber, and WeWork have all announced layoffs in recent weeks, and the trend is expected to continue as the economic downturn drags on.

For Spotify, the layoffs are part of a larger effort to streamline its operations and reduce costs. The company is also reportedly planning to close some of its offices and reduce its marketing and advertising budget.

The news is a blow to Spotify’s employees, who have been working hard to keep the company afloat during the pandemic. But it’s also a sign of the times, as tech companies adjust to the new economic reality.

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