Spotify is reducing its new hiring by 25 percent as recession fears mount, according to an internal memo obtained by Bloomberg. It is unclear which parts of the business will be most affected.
Spotify is far from the only tech company to reevaluate its staffing as the stock market tumbles. Twitter and Meta each announced some degree of hiring freeze last month, and Netflix made headlines in April for its layoffs, particularly at in-house fan site Tudum.
During Spotify’s investor presentation last week, CEO Daniel Ek emphasized the company’s growth not only in subscriptions but in verticals beyond music like podcasting and, soon, audiobooks. But chief financial officer Paul Vogel did hint at the event that staffing could be affected by economic conditions.
“We are clearly aware of the increasing uncertainty regarding the global economy,” Vogel said. “And while we have yet to see any material impact to our business, we are keeping a close eye on the situation and evaluating our headcount growth in the near term.”
Spotify had more than 6,600 staffers at the end of 2021, according to a filing with the SEC, an 18 percent increase from the year prior. Although the market may force the company to slow its ambitions, Ek said in the staff memo that the company will still add headcount.