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Spotify is also suffering from the ‘tech’ crisis and is considering cutting its staff

Date: May 31, 2023 Time: 16:05:36

Spotify also joins the downsizing of big technologies. The music streaming company plans to reduce the number of its workers, although for the moment the adjustment figures have not been released, according to ‘Bloomberg’ and Europa Press. The move comes after the 66% plunge in the shares of the Scandinavian company last year, following investor doubts about the platform’s shift to the podcast format.

In this way, the Swedish company would join other large technology companies that have announced layoffs such as Amazon, Meta, Microsoft or Alphabet, the parent company of Google. Among the reasons that explain the crisis in the sector are the increase in inflation and the rise in rates, or the end of the technological ‘boom’ of entertainment platforms experienced during the pandemic.

Google was the last company to announce a significant cut in its workforce worldwide, specifically 12,000 layoffs that represent more than 6% of the employees of the American giant. . “We have decided to reduce our workforce by approximately 12,000 positions” experienced in that period. “We hire for a different economic reality than the one we face today,” he acknowledged.

Previously, last Wednesday, it was Microsoft that announced that it would undertake a series of measures in response to macroeconomic conditions, including cutting some 10,000 jobs, slightly less than 5% of its workforce, assuming an extraordinary adverse impact of 1,200 million dollars (1,109 million euros) in its accounts for the second fiscal quarter, which it would announce on January 24.

That same day, according to the US press, the electronic commerce giant Amazon began notifying its departure to the workers affected by a new round of layoffs, which added to the adjustment at the end of last year, will reach 18,000 jobs. The latest workforce cuts among US technology companies reflect the cooling of the sector, after years of record activity as a result of the impulse derived from the containment measures of the Covid-19 and the new consumption habits, in addition to the impact of the evolution of the prices and costs.

In this way, in the last stretch of last year several companies in the sector had already announced massive layoffs, such as Meta, owner of Facebook, Whatsapp and Instagram, which reported a cut of 11,000 jobs last November, around 13% of your overall workforce.

Likewise, other multinationals had reported the departure of thousands of workers, including Salesforce, with some 7,000 workers, around 10% of its workforce; Twitter, around 3,700 jobs; Stripe, about 1,100 workers; Shopify and Snap, around a thousand each; the broker Robinhood, another 1,100 jobs.

The crisis of cryptocurrency firms

On his side, in addition to the crisis in the technology sector, the so-called ‘crypto winter’ as a result of the default of the Three Arrows fund and the bankruptcy of the cryptographic assets platform, as well as the blocking of withdrawals and layoffs.

In this sense, firms such as Crypto.com have reported the suspension of half a thousand jobs, while the Coinbase platform will eliminate 950 jobs, after removing another 900 last summer. In turn, Silvergate Capital will carry out a workforce adjustment that will affect 40% of its employees, which will mean the departure of some 200 people after suffering a massive outflow of deposits in the fourth quarter of 2022.

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.

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