{"id":1820558,"date":"2023-01-23T13:35:05","date_gmt":"2023-01-23T18:35:05","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1820558"},"modified":"2023-01-23T13:38:25","modified_gmt":"2023-01-23T18:38:25","slug":"spotify-to-lay-off-hundreds-as-big-tech-aggressively-downsizes","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/spotify-to-lay-off-hundreds-as-big-tech-aggressively-downsizes\/","title":{"rendered":"Spotify To Lay Off Hundreds As Big Tech Aggressively Downsizes"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">20<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fspotify-to-lay-off-hundreds-as-big-tech-aggressively-downsizes%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1820558&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47-->\n<p><a href=\"https:\/\/www.dailywire.com\/topic\/spotify\" target=\"_blank\" rel=\"noopener\">Spotify<\/a> Plans were made to cut headcount by 6 percent due to <a href=\"http:\/\/dailywire.com\/topic\/economy\" target=\"_blank\" rel=\"noopener\">macroeconomic<\/a> Similar moves from prominent people can cause turmoil <a href=\"http:\/\/dailywire.com\/topic\/technology\" target=\"_blank\" rel=\"noopener\">technology<\/a> firms.<\/p>\n<p>In a Monday meeting, Spotify CEO Daniel Ek informed employees <a href=\"https:\/\/newsroom.spotify.com\/2023-01-23\/an-update-on-january-2023-organizational-changes\/\" target=\"_blank\" rel=\"noopener\">note<\/a> Music and audio platforms would help reduce headcount in order to improve operations. The announcement implies that 600 of the company\u2019s 9,800 employees will lose their positions.<\/p>\n<p>\u201cWhile we have made great progress in improving speed in the last few years, we haven\u2019t focused as much on improving efficiency. We still spend far too much time syncing on slightly different strategies, which slows us down,\u201d Ek wrote. \u201cAnd in a challenging economic environment, efficiency takes on greater importance. So, in an effort to drive more efficiency, control costs, and speed up decision-making, I have decided to restructure our organization.\u201d<\/p>\n<p>Note that the growth rate of operations expenditures is much higher than the revenue growth rate.<\/p>\n<p>\u201cThat would have been unsustainable long-term in any climate, but with a challenging macro environment, it would be even more difficult to close the gap,\u201d Ek continued. \u201cAs you are well aware, over the last few months we\u2019ve made a considerable effort to rein-in costs, but it simply hasn\u2019t been enough. So while it is clear this path is the right one for Spotify, it doesn\u2019t make it any easier.\u201d<\/p>\n<p>The company\u2019s third-quarter earnings report showed that total monthly active users increased year-over-year by 20% while revenue rose 21% over the same period. As a result, operating expenses rose 65% \u201chigher personnel costs primarily due to headcount growth.\u201d<\/p>\n<p>Share prices for Spotify rose 3.7% on Monday morning; the company\u2019s stock has plummeted more than 47% over the past year, outpacing a 9% decline in the S&#038;P 500 and an 18% decline in the technology-heavy NASDAQ Composite.<\/p>\n<p>Spotify is just one of many technology companies that have announced layoffs in response to recent events. <a href=\"https:\/\/www.dailywire.com\/news\/investor-tells-zuckerberg-to-cut-headcount-cool-down-metaverse-push-since-no-one-knows-what-it-even-means\" target=\"_blank\" rel=\"noopener\">overzealous hiring<\/a> The sector and the wider economy. Microsoft <a href=\"https:\/\/www.dailywire.com\/news\/microsoft-announces-mass-layoffs-to-cut-costs-amid-economic-headwinds\" target=\"_blank\" rel=\"noopener\">revealed<\/a> The company was expected to lay off approximately 10,000 workers, but Google will. <a href=\"https:\/\/www.dailywire.com\/news\/the-white-house-brushed-off-concerns-about-mass-firings-at-microsoft-and-amazon-now-google-is-laying-off-employees-too\" target=\"_blank\" rel=\"noopener\">reduce<\/a> Amazon accounts for approximately 12,000 of its headcount. <a href=\"https:\/\/www.dailywire.com\/news\/amazon-dismisses-thousands-of-employees-in-bid-to-reduce-costs\" target=\"_blank\" rel=\"noopener\">plans<\/a> to dismiss 18,000 employees.<\/p>\n<p>\u201cLike many other leaders, I hoped to sustain the strong tailwinds from the pandemic and believed that our broad global business and lower risk to the impact of a slowdown in ads would insulate us. In hindsight, I was too ambitious in investing ahead of our revenue growth,\u201d Ek continued. \u201cI take full accountability for the moves that got us here today.\u201d<\/p>\n<p>According to a report by a, more than 46,000 employees were fired from American technology companies within the first month of 2023. <a href=\"https:\/\/news.crunchbase.com\/startups\/tech-layoffs\/#:~:text=More%20than%2046%2C000%20workers%20in,person%20layoff%20announcements%20this%20week.\" target=\"_blank\" rel=\"noopener\">report<\/a> Crunchbase reports that 107,000 jobs were lost by firms in the sector last year, despite Crunchbase&#8217;s findings. Spotify has its headquarters in Sweden.<\/p>\n<p>\u200b\u200bWhite House Press Secretary Karine Jean-Pierre <a href=\"https:\/\/www.dailywire.com\/news\/karine-jean-pierre-gives-non-answers-on-massive-tech-layoffs\" target=\"_blank\" rel=\"noopener\">deflected questions<\/a> from journalists last week regarding the technology sector\u2019s sudden increase in layoffs. One reporter pointed out that President Joe Biden appeared \u201cquite optimistic\u201d In his most recent statements on the economy, he asked whether the dismissals were a \u201cmatter of concern\u201d for the administration. Jean-Pierre said that the commander-in chief watches \u201canytime there are reports of Americans losing their jobs.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Spotify revealed plans to cut headcount by 6% due to macroeconomic turmoil following similar moves from other prominent technology firms. Spotify CEO Daniel Ek informed staff members in a Monday note that the music and audio platform would reduce headcount to streamline operations. The announcement implies that 600 of the company\u2019s 9,800 employees will lose &#8230;<\/p>\n","protected":false},"author":99,"featured_media":1820561,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[541],"tags":[15845,16128,16129,3627,13549,4989],"class_list":["post-1820558","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-daily-wire","tag-lay","tag-aggressively","tag-downsizes","tag-hundreds","tag-spotify","tag-tech"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1820558","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/99"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1820558"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1820558\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1820561"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1820558"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1820558"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1820558"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}