The Streaming Service Spotify is the next technology giant to cut down. The company announces that you should get rid of six percent of the workforce.

The music service Spotify joins the series of technology companies that carry out major staff reductions. Archive image
The music service Spotify joins the series of technology companies that carry out major staff reductions. Archive image

According to the latest interim report, the company had 9 800 employees and the reduction is now costing EUR 35-45 million according to the company.

"We have taken the difficult but necessary decision to reduce the number of employees. I understand that given our historical focus on growth can be seen as a cultural shift. But as we develop and grow as a company, it must also apply to how we work," writes CEO Daniel Ek in an information letter.

Ek refers to the company's running costs increased twice as fast as the revenue growth in the previous year – something that is not considered sustainable anymore.

In addition to the staff cuts, the company announces certain organizational changes where, among other things, the company's content manager ends with immediate effect in order to become an advisor to the company for a period of time.

A wide range of technology giants have recently announced large reductions in staff. Google owner Alphabet announced as late as Friday that it would dispose of 6 percent of its workforce, equivalent to 12,000 posts.

Also Amazon.com, Facebook owner Meta Platforms and software giant Microsoft have in the wake of reduced advertising revenue and shaky economic prospects left unusually large notice.