Invested a lot
Spotify, which had about 9,800 full-time employees a year ago, stated that it anticipated severance-related costs to be at least €35 million (£30 million).
Since its founding, the Swedish company, which is traded on the New York Stock Exchange, has made significant investments to fuel growth through forays into new markets and, in later years, with the creation of exclusive content like podcasts.
The business had previously announced in October that it would reduce hiring through the end of the year and into 2023.
After two years of pandemic-driven growth during which they hired aggressively, technology companies are currently experiencing a downturn, which is why Spotify made its announcement.