Spotify is the latest tech business to announce mass lay-offs, with plans to cut 6 per cent of its workforce.The tech industry is facing a sharp fall in demand for its services after two years of pandemic-powered growth ."Over the last few months we've made a considerable effort to rein in costs, but it simply hasn't been enough," said Spotify chief executive Daniel Elk in a blog post.
"I was too ambitious in investing ahead of our revenue growth," he added, echoing a sentiment voiced by other tech bosses in recent months. Spotify's operating expenditure grew at twice the speed of its revenue last year as the audio-streaming company aggressively poured money into its podcast business, which is more attractive for advertisers due to higher engagement levels.
At the same time, businesses pulled back on ad spending on the platform, mirroring a trend seen at Meta and Alphabet, as rapid interest rate hikes and the fallout from the Russia-Ukraine war pressured the economy.had about 9,800 full-time employees as of September 30.
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