In accordance with an inner memo from Bloomberg, Spotify is reducing its new hires by 25 p.c as recession fears mount. Nonetheless, it’s unclear which components of the enterprise will likely be most affected.
Spotify is way from the one tech firm to reassess its employees because the inventory market plunges. Each Twitter and Meta introduced a point of hiring freezes final month, and Netflix made headlines in April for its layoffs, notably on the interior fan website Tudum.
Throughout Spotify’s investor presentation final week, CEO Daniel Ek emphasised the corporate’s progress in subscriptions and in verticals past music, akin to podcasting and audiobooks. However CFO Paul Vogel hinted on the occasion that staffing may very well be affected by financial situations.
“We’re clearly conscious of the rising uncertainty concerning the worldwide economic system,” Vogel mentioned. “And whereas we’ve but to see any materials affect to our enterprise, we’re preserving a detailed eye on the scenario and evaluating our headcount progress within the close to time period.”
Spotify had greater than 6,600 workers on the finish of 2021, in response to an SEC submitting, an 18 p.c improve from a yr earlier. Though the market could pressure the corporate to curb its ambitions, Ek mentioned within the employees memo that the corporate will nonetheless add employees.