According to an internal letter leaked by Bloomberg, Spotify is cutting new hiring by 25% as recession worries grow. It’s unclear which sectors of the company will be hit the worst.
Spotify is far from the first digital business that has had to rethink its workforce as the stock market has fallen. Last month, both Twitter and Meta announced a hiring restriction, while Netflix made news in April for layoffs, notably at its in-house fan site Tudum.
CEO Daniel Ek underlined the company’s development not only in subscriptions but also in verticals other than music, such as podcasts and, shortly, audiobooks, at Spotify’s investor presentation last week. However, Chief Financial Officer Paul Vogel hinted during the event that economic difficulties would effect personnel.
“We are very conscious of the escalating global economic instability,” Vogel added. “While we have yet to observe any major impact on our business, we are keeping a careful watch on the situation and monitoring our headcount expansion in the short future,” said the company.
According to a statement with the Securities and Exchange Commission, Spotify had more than 6,600 employees at the end of 2021, up 18% from the previous year. Despite the fact that the market may compel the firm to scale back its aspirations, Ek stated in the team message that the company will continue to hire.