: Spotify reportedly planning layoffs as soon as this week

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After slowing its pace of hiring last year, Spotify Technology SA is planning layoffs as soon as this week, according to a new report, adding to the wave of jobs cuts sweeping across the tech industry.

Citing people familiar with the plans, Bloomberg News reported late Sunday that the streaming music service faces imminent job cuts, though an exact number was not specified by sources.

In October, Spotify laid off at least 38 employees at its Gimlet and Parcast podcast units. Last June, Spotify Chief Executive Daniel Ek told employees that the company would reduce hiring by 25%, according to Bloomberg and CNBC reports.

As of the end of its third quarter, Spotify had about 9,800 employees, according to its earnings report. More than 55,000 tech workers have been laid off so far in 2023, according to the website Layoffs.fyi, including 12,000 from Google parent Alphabet Inc., 10,000 from Microsoft Corp. and hundreds more from Intel Corp.

Stockholm-based Spotify has been pressured by massive spending on podcasts in recent years, which have yet to deliver profits and have weighed on margins. In June, Ek predicted a meaningful ramp in profitability within the next couple of years.

Spotify shares SPOT, +4.63% have sunk about 50% over the past 12 months, compared to the S&P 500’s SPX, +1.89% 10% decline over that time.

This article was originally published by Marketwatch.com. Read the original article here.

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