Spotify, the Swedish music streaming company, announced on Monday that it would lay off 6% of its roughly 10,000 employees, the latest cost-cutting announcement among technology companies.
“In hindsight, I was too ambitious in investing ahead of our revenue growth. And for this reason, today, we are reducing our employee base by about six percent across the company,” Spotify chief executive Daniel Ek said on Spotify’s official blog.
“I take full accountability for the moves that got us here today,” Ek added.
Since its inception, the Swedish company, which is traded on the New York Stock Exchange, has made significant investments to fuel growth through expansions into new markets and, in later years, exclusive content such as podcasts.
Despite its success in the online music market, Spotify has never posted a full-year net profit.
BizWatch Nigeria reports that in recent months, tech titans such as Alphabet, Facebook’s parent company, Meta, Amazon, and Microsoft have announced tens of thousands of job cuts as the sector faces economic headwinds.