Spotify Is Slowing Hiring By 25 Percent Amid Economic Uncertainties

Music streaming service Spotify is slowing hiring by 25 percent, making it the latest company to take the decision in the face of economic uncertainties. The information came in an emailed statement CEO Daniel Ek sent to Spotify employees on Wednesday.

The latest development shows that companies are looking for ways to continue to efficiently operate and manage costs in the face of looming economic uncertainties. Many of these companies are beginning to adjust to the new realities after the boom they experienced during the pandemic, especially in the early stages. Job growth has remained quite strong across the economy but the tech space has been the most hit by economic challenges among other things.

These companies, as a way of surviving, have either slowed hiring, laid-off workers, or halted new recruitments.

While speaking on the development, Spotify spokesperson Adam Grossberg referred to the comments of CFO Paul Vogel which he shared during the company’s investor day, “We are clearly aware of the increasing uncertainty regarding the global economy. 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.”

In the email received by employees, CEO Daniel Ek mentioned that the company would “reduce hiring growth by 25%” adding that the company would “continue to still hire and grow, we are just going to slow that pace and be a bit more prudent with the absolute level of new hires over the next few quarters.” Spokesperson Adam Grossberg declined to detail what the 25% reduction in hiring growth would entail.

Cryptocurrency platform Coinbase recently cut 18 percent of jobs and rescinded accepted job offers to cope with economic certainties. Electric vehicle company Tesla also cut 10 percent of jobs including the key position of country manager for Singapore formerly held by Christopher Bousigues.