Swedish music streaming firm Spotify is reportedly planning to slash jobs across various teams, according to a report by Bloomberg. The company, which had 9,800 employees around the world as per its December quarter earnings report, will add a new round of job cuts after 38 employees were fired in October last year, from its podcast-producing subsidiaries.
According to Bloomberg, it is not yet clear as to which divisions would see employees facing the axe, and how many jobs may be reduced.
Spotify, to be sure, has been under fire for its investments in podcast production — and how these investments may tend towards a profit. In June, the company hierarchy said that it may need two years to return profits from its investments in podcast production.
Last year, Mint reported an increasing interest in audio-focused content among platforms, which include audiobooks and podcasts. However, it still remains a niche, and influencer marketing ventures said creators remained adrift of audio as a creator format.
This could be among many factors hindering the ability among audio streaming platforms to draw profits from podcast ventures.
Spotify’s announcement also comes at a time when more layoffs have hit big tech companies.
On January 18, Microsoft chairman and chief executive, Satya Nadella, said in a letter to employees that the company will seek to reduce 11,000 jobs, or around 5% of the company’s workforce, in lieu of a slowdown in tech and ad spends among firms around the world rising out of inflationary concerns.
On Friday, Alphabet, Google’s parent company, also announced plans to fire 12,000 employees, or around 6% of its workforce.