Spotify, the Swedish music streaming giant on Monday announced that it’s going to cut six percent of its roughly 10,000 employees, the latest cost-cutting announcement among technology companies.
“In hindsight, I was too ambitious in investing ahead of our revenue growth. And for this reason, today, we are reducing our employee base by about six percent across the company,” Spotify chief executive Daniel Ek said on the company’s official blog.
“I take full accountability for the moves that got us here today,” Ek added.
Spotify, which is listed on the New York Stock Exchange, has invested heavily since its launch to fuel growth with expansions into new markets and, in later years, exclusive content such as podcasts.
It is to be noted that Spotify has never posted a full-year net profit despite its success in the online music market.
Tech giants such as Google parent company Alphabet, Facebook-owner Meta, Amazon and Microsoft have already announced tens of thousands of job cuts citing economic headwinds.