Spotify is lowering its new hiring by 25 p.c as recession fears mount, in response to an inside memo obtained by Bloomberg. It’s unclear which components of the enterprise will probably be most affected.
Spotify is way from the one tech firm to reevaluate its staffing because the inventory market tumbles. Twitter and Meta every introduced some extent of hiring freeze final month, and Netflix made headlines in April for its layoffs, notably at in-house fan website Tudum.
Throughout Spotify’s investor presentation final week, CEO Daniel Ek emphasised the corporate’s progress not solely in subscriptions however in verticals past music like podcasting and, quickly, audiobooks. However chief monetary officer Paul Vogel did trace on the occasion that staffing might be affected by financial circumstances.
“We’re clearly conscious of the growing uncertainty concerning the worldwide economic system,” Vogel mentioned. “And whereas we’ve but to see any materials affect to our enterprise, we’re conserving an in depth eye on the scenario and evaluating our headcount progress within the close to time period.”
Spotify had greater than 6,600 staffers on the finish of 2021, in response to a submitting with the SEC, an 18 p.c improve from the yr prior. Though the market might drive the corporate to sluggish its ambitions, Ek mentioned within the workers memo that the corporate will nonetheless add headcount.