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Spotify to reduce hiring by 25 percent due to economic uncertainty

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Spotify is among many other companies like Twitter, Meta, Netflix and others announcing either reductions or outright freezes in hiring ahead of “increasing uncertainty” in the economy.

“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.”

Paul Vogel, Spotify CFO

CEO Damiel Ek, last week during the company’s investor presentation emphasized its growth in not only subscriptions but in their verticals beyond music but in podcasting as well. At the event the company’s chief financial officer Paul Vogel hinted that staffing could be affected. At the end of 2021 Spotify employed 6,600 people according to an SEC filing, which amounted to an 18 percent increase from 2020.

A 25 percent reduction in hiring doesn’t mean the company will stop hiring, it simply means they will slow hiring a bit. With the looming recession caused by too much stimulus during a time period where production was slowed and at times halted we are now facing increased interest rates that will slow home, car and other large debt-based purchases which like in 2008 will reverberate across the economy affecting what services are subscribed to and will likely result in major subscriber count losses as people tighten their belts.

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