Our top Focus as of now it is a season of layoffs the latest entry in the list of companies cutting off jobs is Spotify the music giant announced that it would start cutting off jobs as early as this week according to reports.

The company has a cut about 9800 employees the company has in total about 9800 employees and has laid off around 38 employees in October last year from its gimlet media and music streaming parka’s podcast Studios beginning in 2019.

The company made a massive commitment to podcasting and spent more than a billion dollars on music streaming acquiring podcast networks creating software a hosting service and getting the rights to popular shows.

The Joe Rogan Experience and armchair expert which share stumbling by 66 last year investors started getting impatient to see Returns the number of positions to be eliminated wasn’t specified with this announcement.

Why is Spotify laying off employees?

Spotify joints tech companies like alphabet Amazon Microsoft who have cut thousands of jobs recently and for more analysis we are now being joined by Adrian Marsh from London he’s a tech journalist Adrian.

Welcome to the broadcast uh pleased to be here Priyanka right another company seems music streaming to bite the bullet we’ve been hearing about layoffs ever since we got into 2023 will there be any respite from layoffs anytime soon.

It certainly doesn’t look like it I mean certainly most of the big companies have already announced so Microsoft have shed five percent of their Workforce colossal 10000 Google shedding uh uh sorry oh five percent of their ten thousand.

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What is the workforce of Spotify?

I should say um uh Google no it is ten thousand yes uh Google losing 12 000 they’re shedding six percent meta 13 that’s the company formerly known as Facebook um Amazon shed a colossal 18 000 staff uh we don’t owe how many Spotify are losing.

Twitter of course more than anybody bigger portion anybody else um they’ve only got 2300 employees left they’ve lost about 70 so of course.

They’re they’re an exceptional case they are now burdened with 13 billion of debt after musk music streaming took them over uh so so it’s music streaming a bit different but the tech industry is very much subject to Big swings um in this case uh it’s consumers who cut back on entertainment spending.

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How many employees does Spotify have in USA?

They cut back on it spending when the when the economy is poor uh you know you music streaming can delay buying a new computer on the whole delay buying new software and one of the first things to go is services like Spotify.

Streaming and streaming video Services than the like um for companies though it’s kind of similar um they they are uh hit by Big Springs in online advertising um companies spend a lot less on Advertising they make less from advertising when consumers and other businesses are spending less.

So the return is smaller so that gets cut back and of course they music streaming can delay their I.T spend as well and on top of these big big numbers what we don’t see of course is the contractors who have lost their jobs the temporary technical.

• T staff who form a big part of these workforces and although you know that comes with the territory they expect you know that they’re hired on the basis that they can be got rid of at the moment’s notice.

Why is Spotify shutting off? music streaming?

They’re kept pretty hard during these times because huge numbers of these Freelancers flood onto the market so it’s very difficult for them to find another job Adrian just talking about these layoffs that have started that have kick-started the year 2023 with you know.

There’s a lot of talk about shareholder value versus stockholder value music streaming there’s also a lot of questions being asked about music streaming the intrinsic value being offered by all these tech companies there’s no tangible asset as such uh could could it be a case of too much growth too soon.

Which could now be sort of evening out yeah and that’s been a feature of tech since since the days of the tech booms decades ago um so yes uh for one thing they’re very much subject to Consumer um share buying whims so people tend to buy shares in companies.

How does Spotify treat its employees?

They’ve heard of and understand uh so they tend to be overvalued compared to the more and more boring prosaic sort of stock that uh that is less exciting and might provide slower but longer music streaming term growth.

• It’s very much based on exponential growth often these companies have been uh for for a good while um growing incredibly fast they’ve seen the the number of users they have double uh over relatively short periods but that can never go on forever.

• A lot of these companies are reaching a mature stage or have reached a mature stage particularly companies like meta for example um you know where you see uh you know pretty well everybody who’s got a PC in the world is using Facebook.

• So something you know more or less not and and um so you know these things bottom out and often some of the more naive shareholders tend to to ignore this um it’s the same with companies like Tesla.

What company runs Spotify?

It’s exciting shiny company but it’s colossally overvalued um compared to uh it’s rather more boring competitive like General Motors absolutely because you know those are very interesting points you’ve raised you know.

I think there’s a lot of Sheen attached music streaming to these companies which seems to be wearing music streaming off at this point uh thank you so much for all your inputs and thanks for joining us on weanna this hour absolute pleasure Beyond world is one is now available in your country download the app now.

All the new foreign layoffs mounting in big Tech Spotify announced music streaming it will lay off six percent of its Workforce in a bid to bolster sagging profit margins and well make money this move comes after the company laid off 38 people in October.

At its podcast division the music streaming giant joins a slew of tech companies led by Microsoft and Salesforce announcing layoffs to cut costs Hill Finance Tech editor Dan Halley is here with the analysis of stent that’s right Brian.

Is Spotify a big tech company?

let’s just go over the number of layoffs that we’ve seen so far we actually have it broken down here in this chart we’ll start off obviously with Amazon they laid off about 18 000 employees we have meta at 11 000 Microsoft at 10 000 Sales force at nine.

It keeps going down to Twitter although that’s a little bit of a different story because music streaming it’s more about the the Elon Musk story uh and his debt and less about the economic conditions but you know obviously these gigantic companies facing these layoffs.

Now Spotify with these 600 employees a lot of this clearly having to do with the over expansion during the pandemic uh we had companies like meta Microsoft Amazon Google going out and really kind of bulking up their workforces thinking that.

Does Spotify have a positive future?

There was a new normal uh for the the world really as far as they needed to be employed and music streaming then you know they ended up having to cut back as we’ve seen that new normal kind of Fall Apart uh and economic conditions kind of go south but you know Spotify.

Obviously as you mentioned they had big investments in their music streaming podcast division they had layoffs there uh people are still waiting investors are still waiting uh for that to really pay off a billion dollars uh they got The Joe Rogan Experience.

They have others in there and so this really is kind of just part a piece of the larger story of the tech industry and how we’ve seen this lavish spending followed by these steep Cuts uh and we’re talking about uh places like Google.

How big is Spotify employees?

Meta cutting back on some of the things that employees have kind of leaned music streaming on as some of the big perks and so you know if you’re an employee one of these companies rely on the stock price.

You’re seeing it fall obviously that’s also hurting you as well as the layoffs yeah definitely when we talk about these layoffs too um you know from the folks that we talked to last week in Davos.

We heard from a number of Executives on the layoffs and they talked about that they’re not necessarily going to be Universal right across the board listen what they said anything that music streaming has people implications are probably the hardest decisions we have to make as Executives but at the same time.

Who is bigger than Spotify?

They are the right thing to do for the success of the company I think it’s pretty difficult to say I think it’s I think the next couple of quarters are really going to tell us what’s really going to happen in the economy we will continue to reallocate resources in fact we continue to hire in some areas where we need the talent.

• So while we are not in a position to have to do layoffs we certainly have you know slowed down hiring a bit during the back half of the year I think when we see a lot of peer music streaming companies laying people off.

• When we see people in the tech industry really struggling the idea of throwing music streaming in a you know flying in a big performer spending a ton of money on a lavish party didn’t make a bunch of sense of course that last thing is Matt Prince of cloud flare.

What perks do Spotify employees get?

Cloud flare thank you my brain is still screaming still defrosting Julie he’s sort of throwing shade at some of his compatriots there in Davos who did have big lavish parties um something else I wanted to ask you about Diana as we talk about Spotify specifically is Don.

The company the chief content officer is that sort of a sign that um Spotify strategy of really doubling down on podcasts in particular is not what they’re going to continue on with yeah I mean look podcasts obviously have exploded and you know recent years people uh continue to listen to them.

It doesn’t seem to have gotten the payoff that investors had wanted from at Spotify so you know you could read this as a questioning of whether or not they’ll continue to dump as much as they have into the podcast space.

They’re going to continue to offer podcasts but yeah I think it does really kind of lead you to believe that they’re they’re clearly unhappy with where the state of things are as far as the podcast business goes all right Yahoo finance is owned Dan Howey.

The latest in what we’ve been tracking in this broader wave of tech layoffs as well hitting Spotify today thanks so much Dan appreciate it.