Spotify to Layoff 6% of its Workforce
“I take full accountability for the moves that got us here today,” said CEO Daniel Ek.
“I hoped to sustain the strong tailwinds from the pandemic and believed that our broad global business and lower risk to the impact of a slowdown in ads would insulate us.”
Ek continued that his focus now is on ensuring that every employee is treated fairly as they depart.
The following will apply to all impacted Spotify employees:
- Severance pay: We will start with a baseline for all employees with the average employee receiving approximately 5 months of severance. This will be calculated based on local notice period requirements and employee tenure.
- PTO: All accrued and unused vacation will be paid out to any departing employee.
- Healthcare: We will continue to cover healthcare for employees during their severance period.
- Immigration support: For employees whose immigration status is connected with their employment, HRBPs are working with each impacted individual in concert with our mobility team.
- Career Support: All employees will be eligible for outplacement services for 2 months
“We accomplished what we set out to do in 2022 and our overall business continues to perform nicely,” notes Ek. “But 2023 marks a new chapter.”
“I thank you for everything you’ve done for Spotify and wish you every future success.”