Music streaming service Spotify is slowing hiring by 25 percent, making it the latest company to take the decision in the face of economic uncertainties. The information came in an emailed statement CEO Daniel Ek sent to Spotify employees on Wednesday.
The latest development shows that companies are looking for ways to continue to efficiently operate and manage costs in the face of looming economic uncertainties. Many of these companies are beginning to adjust to the new realities after the boom they experienced during the pandemic, especially in the early stages. Job growth has remained quite strong across the economy but the tech space has been the most hit by economic challenges among other things.
These companies, as a way of surviving, have either slowed hiring, laid-off workers, or halted new recruitments.
While speaking on the development, Spotify spokesperson Adam Grossberg referred to the comments of CFO Paul Vogel which he shared during the company’s investor day, “We are clearly aware of the increasing uncertainty regarding the global economy. And while we have yet to see any material impact to our business – we are keeping a close eye on the situation and evaluating our headcount growth in the near term.”
In the email received by employees, CEO Daniel Ek mentioned that the company would “reduce hiring growth by 25%” adding that the company would “continue to still hire and grow, we are just going to slow that pace and be a bit more prudent with the absolute level of new hires over the next few quarters.” Spokesperson Adam Grossberg declined to detail what the 25% reduction in hiring growth would entail.
Cryptocurrency platform Coinbase recently cut 18 percent of jobs and rescinded accepted job offers to cope with economic certainties. Electric vehicle company Tesla also cut 10 percent of jobs including the key position of country manager for Singapore formerly held by Christopher Bousigues.
Ibhadojemu Lucky Emmanuel is a graduate of Education and Economics from the University of Benin. He has a passion for tech and business and has been writing professionally for over a period of five years. He's written across various topics and segments and knew tech-business was it when he first stumbled on it. He has a great passion for music and arts, and wants to visit as many countries as he can someday.
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behaviour or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional
Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes.The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
