With a mea culpa for excessive growth optimism, Daniel Ek, CEO of Spotify, announced that he will lay off 6% of his workforce. The news adds to the wave of layoffs from technology companies that apparently will continue to shake the outlook for the sector. Spotify joins the wave of massive layoffs by technology companies by shedding 6% of its workforce. This was announced by Daniel Ek, CEO of the Swedish multinational, who recognizes that he was “too ambitious” when proposing growth plans that now prove to be unrealistic. Admitting his miscalculations, given the good times during the pandemic, Ek pointed out that he was too ambitious in investing before his income grew.
Calculation errors Spotify
And for this reason, today we are reducing our employee base by approximately 6% companywide. I take full responsibility for the movements that brought us here today. My Saudi Arabia Telegram Number Data goal now is to ensure that all employees are treated fairly when they leave,” he emphasized. Spotify has about 9,800 workers around the world, the announcement represents the departure of about 600 workers. A decision that has already been notified to the US regulator (the SEC), and also to all the company’s employees, who have received a note from the CEO, Daniel Ek.
Compensation for those laid off and other benefits
According to the executive of the Swedish multinational, those dismissed will receive about five months of compensation, will be compensated for vacations that they have not used, will maintain their health insurance for a time, will have the opportunity to be relocated, and if their immigration status depends on their employment will get advice from human resources. According to the note sent to the SEC, the process that impacts hundreds of employees will cost the company between 35 and 45 million euros.
