Spotify will cut hiring by 25 percent

Spotify will cut hiring by 25 percent

According to an internal memo obtained by Bloomberg, Spotify is reducing its new hiring by 25 percent as fears of a recession grow. It is not clear which parts of the business will be affected the most.

Spotify is far from the only tech company to reevaluate its staff as the stock market plunges. Twitter and Meta announced a handful of hiring freezes last month, and Netflix made headlines for its layoffs in April, especially on the in-house fan site Tudum.

During Spotify's investor presentation last week, CEO Daniel Eck emphasized the company's growth not only in subscriptions but in verticals beyond music like podcasting and soon audiobooks. But Chief Financial Officer Paul Vogel hinted at the event that employees could be affected by the economic situation.

"We are clearly aware of the growing uncertainty about the global economy," Vogel said. "And while we don't see any material impact on our business yet, we are closely monitoring the situation and evaluating growth in our workforce in the near term."

Spotify had more than 6,600 employees at the end of 2021, according to a filing with the SEC, an 18 percent increase from the year before. While the market may force the company to slow down its ambitions, one said in a staff memo that the company would still increase the workforce.