ANKARA, TURKIYE - JANUARY 06: In this photo illustration, logo of Spotify is displayed on a quick-witted phone in Ankara, Turkiye on January 06, 2023. (Photo by Ercin Erturk/Anadolu Agency via Getty Images)
LONDON (AP) - Music streaming overhaul Spotify said Monday it's cutting 6% of its global workforce, or about 600 jobs, becoming yet another tech commercial forced to rethink its pandemic-era expansion as the economic outlook weakens.
CEO Daniel Ek announced the restructuring in a communication to employees that was also posted online.
As part of the revamp attractive a management reshuffle, "and to bring our costs more in line, we've made the worry but necessary decision to reduce our number of employees," Ek wrote.
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Big tech anxieties like Amazon, Microsoft and Google announced tens of thousands of job cuts this month as the economic boom that the manufacturing rode during the COVID-19 pandemic waned.
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Stockholm-based Spotify had benefited from pandemic lockdowns because more country had sought out entertainment when they were stuck at home. Ek indicated that the company's commerce model, which had long focused on growth, had to evolve.
The company's by means of costs last year grew at double its revenue growth, a gap that would be "unsustainable long-term" in any economic weather, but even more difficult to close with "a attractive macro environment," he said.
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Spotify made "considerable effort" to rein in the damages over over the past few months, "but it modestly hasn't been enough," he said.
"I hoped to hold the strong tailwinds from the pandemic and believed that our vast 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," Ek said.
He said that's why the commercial is cutting its global workforce by about 6%. Ek didn't give an ftrue number of job losses but a company spokesman said it's 600, based on 9,808 employees behind in its latest quarterly report.
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"I take full accountability for the attempts that got us here today," Ek said.
After ages of heady growth, analysts say tech companies are populace forced to cut jobs in preparation for an economic dowturn that's probable to cut demand for their software, products and amenities and reduce digital ad spending.
Just last week, Google announced it was slashing 12,000 jobs once Microsoft said it would cull 10,000 workers, bringing to at least 48,000 the number of cuts that Big Tech anxieties announced in January alone.
Even with all of the unique layoffs, most tech companies are still vastly larger than they were three ages ago. Spotify had 4,405 employees in 2019, before the pandemic began, according to that year's annual report.
In morning dealing, shares of Spotify added 3.5% to $101.32.
