Tech job cuts: Spotify to shed 6% of workforce

STORY: Spotify is the latest big tech firm to cut jobs.

The music streaming service said Monday (January 23) that it would shed 6% of its workforce.

That equates to around 600 jobs.

The company said moves to rein in costs had proved insufficient.

Last year saw operating expenditures grow at twice the pace of revenues as it poured money into podcasting.

At the same time, Spotify saw businesses pull back on advertizing as factors including soaring interest rates pressured global demand.

U.S.-listed shares in the company rose about 3.5% in pre-market trade following Monday’s news.

Now the job cuts make Spotify firmly part of a global trend.

Tech firms shed jobs last year as a demand boom sparked by the global health crisis faded away.

Layoffs have since picked up steam over the past few weeks.

Google-parent Alphabet says it plans to eliminate 12,000 posts.

Another 10,000 are going at Microsoft.

And Amazon is in the process of cutting 18,000 jobs.