Spotify Technology, a music streaming platform with 456 million users, has confirmed its plans to cut 6 percent of its workforce, in order to slash Opex.
Spotify had about 9,800 full-time employees, as of Sept. 30.
Sweden-based Spotify has lost some of the advertisers. Spotify said the growth of Spotify’s Opex outpaced revenue growth by 2x in 2022.
Spotify said it will incur about 35 million euros ($38.06 million) to 45 million euros in severance-related charges.
The company said its chief content and advertising business officer Dawn Ostroff will resign. Spotify, under the leadership of Dawn Ostroff, grew podcast content by 40x, drove significant innovation in the medium and became the leading music and podcast service in many markets.
“These investments in audio offered new opportunities for music and podcast creators and also drove new interest in the potential of Spotify’s audio advertising. Spotify was able to innovate on the ads format itself and more than double the revenue of our advertising business to €1.5 billion.
Spotify said it will be centralizing the majority of engineering and product work under Gustav Soderstrom as Chief Product Officer and the business areas under Alex Norstrom as Chief Business Officer.