Spotify has become the latest company in the tech sphere to announce major job cuts, with 6% of the workforce to be cut in the coming months.
The US-listed Swedish music streaming company has said a wider shake-up to its operations will see its chief content officer Dawn Ostroff leave the company.
The number of employees expected to leave is believed to be around 600 – based on the company’s latest official tally.
Spotify said it had to take a severance charge of between €35m (£30.7m and €45m (£39.6m).
The shares rose more than 4% in premarket trading.
It is the latest household name to cut large numbers of jobs to try to save money as the global economy remains under intense pressure from the fallout from Russia’s war in Ukraine.
The invasion last February exacerbated pressures on the global supply chain by driving up costs with inflation – and rising interest rates to help combat pricing pressures – which are weighing on consumer and business client demand.
Fears remain of a recession in the world’s largest economy.
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Companies such as Spotify, Google’s parent company Alphabet and Facebook’s Meta have each reported a slowdown in major ad revenue.
Spotify had said in October that it would slow hiring for the rest of the year and into 2023.
Microsoft was the latest to reveal major layoffs last week, totaling 10,000.
