Spotify to cut 6% of workforce

Spotify Technology SA (NYSE: SPOT) plans to lay off 6% of its workforce. The company had about 9,800 full-time employees as of September 30th. This reduction is part of the ongoing trend in the tech industry, which is facing a demand downturn after two years of aggressive hiring during the pandemic.

According to Reuters, Spotify’s operating expenditure grew at twice the speed of its revenue last year as the audio-streaming company aggressively poured money into its podcast business, which is more attractive for advertisers due to higher engagement levels.