Spotify Stock Jumps Higher As Music Streaming Group Unveils Latest Tech Job Cuts
Spotify joins Microsoft, Google, Amazon and Meta in unveiling big job cuts heading into an uncertain year for tech.
Spotify joins Microsoft, Google, Amazon and Meta in unveiling big job cuts heading into an uncertain year for tech.
Spotify Technology (SPOT) - Get Free Report shares surged higher Monday after the music streaming app joined a host of other big tech companies in unveiling big job cuts.
Spotify said it would slash around 6% of its global workforce, or 600 jobs, in a move that will likely bring a $40 million hit in "severance related charges" to its current quarter earnings. Spotify's chief content officer, Dawn Ostroff, is also set to leave the group following a restructuring of its senior management.
Spotify's U.S.-listed shares were marked 4.33% higher in pre-market trading immediately following the job cut announcement to indicate an opening bell price of $120.15 each.
Last week, Google parent Alphabet GOOGL added its name to the growing list of big tech companies paring back staffing in the midst of waning customer demand and a slump in advertising sales.
Google CEO Sundar Pichai informed employees of the coming job cuts through a company-wide memo, with headcount losses expected in engineering and product teams as well as upper-level management.
The move followed a similar cull at Microsoft MSFT, which said it would slash around 5% of its global workforce, and take a $1.2 billion charge against its second quarter earnings, as it looks to 'align costs' with customer demand.
Microsoft said the cuts, which it expects to conclude in March, will result in the loss of around 10,000 jobs and a 12 cent hit to December quarter earnings, but added that it would continue to invest in areas such as AI and other advanced technologies.
Late last year, Amazon (AMZN) - Get Free Report announced plans to reduce its global workforce by around 18,000, which began earlier this week, while Meta Platforms (META) - Get Free Report revealed job cuts of around 11,000.
What's Your Reaction?
