By Vlad Schepkov
Spotify (NYSE:SPOT) has announced "a reduction in the Company’s employee base by about 6% across the Company", confirming Sunday reporting by Bloomberg.
SPOT estimates that it will incur approximately €35 million - €45 million (€1= $1.087) in severance-related charges.
The company further announced that Dawn Ostroff, chief content & advertising business officer, will depart, while Alex Norström, currently chief freemium business officer, and Gustav Söderström, currently chief research & development officer, will each take on additional responsibilities and be appointed as co-presidents of the company.
Late last year the company already made small cuts, letting go of 38 employees from its podcast studios Gimlet Media and Parcast.
Spotify is now joining a growing list of tech companies, big and small, making notable workforce reductions - plans to let go of 10,000 employees by Microsoft (NASDAQ:MSFT) and 12,000 people by Google (NASDAQ:GOOGL) were revealed in the past week alone.
SPOT is gaining over 4% in Monday's pre-market session following the announcement. The stock is up over 19% YTD.