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After Google and Microsoft, Spotify likely plans to fire employees starting this week

After Google and Microsoft, Spotify likely plans to fire employees starting this week

Following the two Big Tech companies -- Google and Microsoft, music streaming platform Spotify is reportedly planning to fire some of its employees.

Image: Reuters Image: Reuters
Story highlights
  • Google and Microsoft together fired over 22000 employees globally.
  • Spotify is reportedly planning to fire some of its employees.
  • Spotify may announce layoffs as early as this week to cut costs.

Last week, Google and Microsoft together fired over 22000 employees globally. Following the two Big Tech companies, music streaming platform Spotify is reportedly planning to fire some of its employees. As per the latest report coming from Bloomberg, Spotify will announce layoffs as early as this week to cut costs. The company hasn't confirmed any official details yet.

According to the report, there are no clarifications on the number of jobs that will be eliminated from Spotify. Neither has the report revealed the departments that will be impacted due to the upcoming layoffs. The music streaming platform hasn't confirmed layoffs yet but if the report is considered, the company will start layoffs as early as this week.

Google and Microsoft are the latest companies to fire employees. Google CEO Sundar Pichai last week announced firing 12000 employees across departments globally. The tech giant has started layoffs in the United States already and eventually impacted employees in other markets will get notified.

Pichai sent a letter to employees wherein he mentioned that the company took a "rigorous review across product areas" to ensure that current roles are aligned with the company's highest priorities. In the letter, Pichai also noted that the company will ensure a smooth "transition" for the impacted workers.

Google CEO confirmed that the company will pay full notification period (minimum 60 days) to impacted employees. In addition, Google will also offer a severance package starting at 16 weeks' salary + two weeks for every additional year at the company. Impacted employees will also receive bonuses and healthcare benefits as per their contracts, Pichai noted.

Besides Google, Microsoft CEO Satya Nadella also announced layoffs and confirmed firing 10000 employees globally across departments. Nadella said that the company is laying off thousands of employees as a result of "macroeconomic conditions and changing customer priorities." In an email to employees, the Microsoft CEO wrote that "less than 5 percent of our total employee base, with some notifications happening today."

"While we are eliminating roles in some areas, we will continue to hire in key strategic areas," Nadella said in the same email to employees. He emphasized the importance of building a "new computer platform" using advances in artificial intelligence. "We're also seeing organizations in every industry and geography exercise caution as some parts of the world are in a recession and other parts are anticipating one," Nadella further wrote.

Before Microsoft and Google, Big Tech companies like Amazon, Twitter, Meta and many other companies have laid off a large chunk of their workforce in the last few months. It all started after Elon Musk fired more than 50 per cent of the staff without any prior notice.

Published on: Jan 23, 2023, 1:37 PM IST
Posted by: BT Siteadmin, Jan 23, 2023, 1:32 PM IST