Spotify has announced the laying off of 6% of its global workforce.
The Stockholm-based music streaming service did not give a specific number of cuts, CNN reported that about 590 people will be affected.
According to a recent regulatory filing, Spotify employed about 9,800 people, The New York Times reported.
CEO Daniel Ek made the announcement to employees saying that the company made the move to “bring our costs more in line, we’ve made the difficult but necessary decision to reduce our number of employees,” Ek wrote, according to The Associated Press.
They’ve also made some moves involving management.
Spotify found success during the COVID-19 pandemic when people were staying home and needed entertainment, but operating costs last year were double its revenue and would have been “unsustainable long-term” in any economy, but with the current “challenging macro environment” would have been worse.
Cost-cutting over the past few months was not enough to reverse the trend, the AP reported.
Spotify is the latest tech company to slash its workforce.
Google’s Parent company, Alphabet, cut 12,000 employees while Microsoft laid off 10,000, last week, The New York Times reported.
©2022 Cox Media Group