According to an internal Spotify memo, new hires are falling 25 percent as recession fears mount Bloomberg† It is unclear which parts of the company are most affected.
Spotify is far from the only tech company to re-evaluate its workforce as the stock market plummets. Twitter and Meta each announced a certain hiring freeze last month, and Netflix made headlines in April for its layoffs, most notably on its internal fan site. Tudum†
During Spotify’s investor presentation last week, CEO Daniel Ek highlighted the company’s growth not only in subscriptions, but also in verticals beyond music, such as podcasting and, soon, audiobooks. But financial director Paul Vogel hinted that headcount could be affected by economic conditions.
“We are clearly aware of the increasing uncertainty about the global economy,” Vogel said. “And while we haven’t seen a material impact on our business yet, we are closely monitoring the situation and evaluating our workforce growth in the near term.”
Spotify had more than 6,600 employees at the end of 2021 filing with the SEC, an increase of 18 percent from the previous year. While the market may force the company to slow down its ambitions, Ek said in the staff memo that the company will still add staff.