Spotify announced on Monday that it plans to lay off 6% of its workforce.
The audio platform further stated that the cut off would take a related charge of up to nearly $50 million.
The technology industry in the past few months has had massive layoffs in major companies.
“Over the last few months, we’ve made a considerable effort to rein in costs, but it simply hasn’t been enough,” Chief Executive Daniel Elk said in a blog post announcing the roughly 600 job cuts.
“I was too ambitious in investing ahead of our revenue growth,” he added, echoing a sentiment voiced by other tech bosses in recent months.
Spotify’s operating expenditure grew at twice the speed of its revenue last year as the audio-streaming company aggressively poured money into its podcast business, which is more attractive for advertisers due to higher engagement levels.
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At the same time, businesses pulled back on ad spending on the platform, mirroring a trend seen at Meta and Google parent Alphabet Inc, as rapid interest rate hikes and the fallout from the Russia-Ukraine war pressured the economy.
The company, whose shares rose 5.8% to $103.55, is now restructuring itself in a bid to cut costs and adjust to the deteriorating economic picture.
Dawn Ostroff, the head of content and advertising, is leaving Spotify after a tenure of over four years. During her time at the company, Ostroff played a key role in shaping Spotify’s podcast business and navigated through backlash related to Joe Rogan’s show spreading misinformation about COVID-19.
Spotify had about 9,800 full-time employees as of Sept. 30.