Spotify Technology SA plans to quit as soon as this week, according to people familiar with the plans, joining a number of tech companies from Amazon.com Inc to Meta Platforms Inc in announcing job cuts to cut costs. The number of positions eliminated was not disclosed publicly. Spotify laid off 38 employees at its Gimlet Media and Parcast podcast studios in October. The music giant has about 9,800 employees, according to its third earnings report.
Tech companies added to their portfolios during the pandemic but have been forced to scale back due to reduced advertising spending and economic uncertainty. Amazon.com, Meta and Microsoft Corp. was among the largest companies to announce layoffs recently, while Google parent Alphabet Inc. it said on Friday it would cut about 12,000 jobs, more than 6% of its global workforce.
A Spotify spokesperson declined to comment on the upcoming cuts.
The company has been committed to podcasting since 2019. It spent more than a billion dollars on acquiring podcast networks, creative programs, hosting services and the rights to popular shows such as The Joe Rogan Experience and Armchair Expert.
However, the currency has tested the patience of investors. Shares fell 66% last year as investors questioned whether they would start seeing returns. Spotify executives said in June that its podcast business will be profitable for the next year or two.