Amid the big tech lay-offs across the globe, music streaming platform Spotify Technology on Monday announced that it is planning to cut jobs by about 6% across the company to lower costs. Currently, the company has about 9,800 employees and a 6% job cut would mean laying off about 600 people working for them. The move was announced in a filing Monday morning, confirming reports from over the weekend that there would be job cuts. However, the company also confirmed that it would help the fired employee with severance pay, health care, and career support so that they can sustain the initial crisis.
Spotify laid off 38 staff from its Gimlet Media and Parcast podcast studios in October.
Here's a look at what will affected employees get:
Severance pay: We will start with a baseline for all employees with the average employee receiving approximately 5 months of severance. This will be calculated based on local notice period requirements and employee tenure.
PTO: All accrued and unused vacation will be paid out to any departing employee.
Healthcare: We will continue to cover healthcare for employees during their severance period.
Immigration support: For employees whose immigration status is connected with their employment, HRBPs are working with each impacted individual in concert with our mobility team.
Career Support: All employees will be eligible for outplacement services for 2 months.
The company also announced that Dawn Ostroff, chief content and advertising business officer, will leave the company as part of a broader reorganization. Alex Norström, currently chief freemium business officer, and Gustav Söderström, currently chief research & development officer, will each take on additional responsibilities as co-presidents of the company.
Tech companies added to their headcounts during the pandemic but were forced to make reductions in response to diminished advertising revenue and a shaky economic outlook. Amazon, Meta and Microsoft Corp. were among the biggest companies to announce staff reductions recently, while Google parent Alphabet Inc. said Friday it will cut about 12,000 jobs, more than 6% of its global workforce.
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