Spotify is planning to lay off some of its employees, according to internal sources, as tech layoffs look like they are not stopping anytime soon.
The music-streaming company has about 9,800 employees and has seen its shares price drop from about $200 per share in January 2022 to nearly $72 in December. Since the turn of the year, it has begun climbing slowly and was priced at $94/share when this article was first published.
It is not clear why the company is experiencing financial troubles but Gadgets 360 reported that it had made some huge bets in podcasting since 2019. It splashed billion dollars on acquiring podcast networks, creation software, a hosting service and the rights to popular shows.
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With competition rising in the podcast business and in the general music streaming industry, Spotify no longer has the dominance it once enjoyed. Although, it still leads the industry with over 195 million paying subscribers, compared to the 85 to 90 million that YouTube Music and Apple Music struggle with.
Spotify is sitting on details about its layoffs, refusing to give comment to the press after requests for one. We have seen Alphabet announce upfront that 12,000 of its employees were leaving, the same with Amazon which confirmed that it will be firing 18,000 people , and Microsoft saying that it was laying off 10,000 staff.
The company has resisted raising its subscription price while competitors like Apple Music, which hiked its pricing last October, and Amazon Music, which raised its subscription offerings by a dollar this month.
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