news/GOOGL/2023.01.23/Spotify to trim 6% of workforce in latest tech layoffs.txt

Jan 23 (Reuters) - Spotify Technology SA said
on Monday it plans to cut 6% of its workforce and would take a
related charge of up to nearly $50 million, adding to the
massive layoffs in the technology sector in preparation for a
possible recession.The tech industry is facing a demand downturn after two
years of pandemic-powered growth during which it had hired
aggressively. That has led firms from Meta Platforms Inc
to Microsoft Corp to shed thousands of jobs."Over the last few months we've made a considerable effort
to rein in costs, but it simply hasn't been enough," Chief
Executive Daniel Elk said in a blog post announcing the roughly
600 job cuts."I was too ambitious in investing ahead of our revenue
growth," he added, echoing a sentiment voiced by other tech
bosses in recent months.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.At the same time, businesses pulled back on ad spending on
the platform, mirroring a trend seen at Meta and Google parent
Alphabet Inc, as rapid interest rate hikes and the
fallout from the Russia-Ukraine war pressured the economy.The company, whose shares rose 5.8% to $103.55, is now
restructuring itself in a bid to cut costs and adjust to the
deteriorating economic picture.It said Dawn Ostroff, the head of content and advertising,
was leaving after an over four-year stint at the company.
Ostroff helped shape Spotify's podcast business and guided it
through backlash around Joe Rogan's show for allegedly spreading
misinformation about COVID-19.The company said it is appointing Alex Norström, head of the
freemium  business, and research and development boss Gustav
Söderström as co-presidents.Spotify had about 9,800 full-time employees as of Sept. 30.
($1 = 0.9196 euros)(Reporting by Eva Mathews in Bengaluru; Editing by Sherry
Jacob-Phillips and Shailesh Kuber)