Spotify has become the latest company in the tech sector to announce major layoffs, cutting 6% of its workforce in the coming months.
The Sweden-based U.S.-listed music streaming company said a broader shakeup of its business would see the departure of its chief content officer, Dawn Ostroff, from the business.
According to the company’s latest official count, the total number of employees who are leaving is about 600.
Spotify said it would collect a severance package of between €35m (£30.7m) and €45m (£39.6m).
Shares rose more than 4% in premarket trading.
It is the latest household name to lay off staff to conserve cash as the global economy remains under intense pressure from Russia’s civil war. Ukraine.
Last February’s intrusion exacerbated pressure on global supply chains as it drove up costs inflation – Rising interest rates help counter price pressures – weakening demand from consumers and corporate clients.
Fears of a recession in the world’s largest economy remain.
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Companies including Spotify, Google parent Alphabet and Facebook’s Meta have all reported slowdowns in key ad revenues.
Spotify said in October that it would slow down its hiring for the rest of this year and into 2023.
Microsoft It is the latest mass layoff plan announced last week, with a total of 10,000 layoffs.