Tag: workforce reduction

  • Spotify announces second round of layoffs, cutting 200 jobs in podcast unit amid restructuring efforts

    Spotify announces second round of layoffs, cutting 200 jobs in podcast unit amid restructuring efforts

    On Monday, Spotify Technology announced its intention to implement a second wave of redundancies, resulting in the reduction of 200 positions within its podcast unit. This strategic restructuring follows a prolonged period of substantial investment, as the company seeks to adapt its business model accordingly.

    This decision affects approximately 2 per cent of the music-streaming giant’s workforce, bringing Spotify in line with other prominent industry players such as Meta Platforms and Roku. These companies, facing an uncertain economic landscape, have also resorted to similar measures by implementing a second round of job cuts.

    During early trading, the shares of this Sweden-based organisation exhibited a modest increase of approximately 0.5 per cent, outperforming the relatively subdued performance of the broader market.

    In recent years, Spotify has actively pursued the expansion of its podcast business, anticipating that the format’s heightened engagement levels would attract a larger number of advertisers. However, this ambitious endeavour resulted in a surge of the company’s operating expenditure, growing at twice the rate of its revenue last year. Furthermore, rising interest rates and persistent inflation have prompted businesses to curtail their advertising expenditures.

    Consequently, earlier in 2023, Spotify took the decision to reduce its workforce by 6 per cent, while also announcing the departure of Dawn Ostroff, a pivotal figure in shaping the podcast business. Ostroff adeptly navigated the company through contentious episodes, including the controversies surrounding Joe Rogan’s show and its alleged dissemination of misinformation concerning COVID-19.

    In light of these circumstances, Sahar Elhabashi, the head of Spotify’s podcast business, conveyed on Monday that the company has reluctantly but necessarily opted for a strategic realignment. This course of action aims to address the prevailing challenges and align the organisation with its evolving objectives.

    Additionally, Spotify unveiled its plan to consolidate the Parcast and Gimlet studios into a unified entity known as Spotify Studios. This amalgamation will oversee the production of Spotify originals. Elhabashi emphasised that the company intends to adopt a bespoke approach tailored to each individual show and creator, departing from the previously uniform approach.

    By undertaking these measures, Spotify aims to optimise its operations, remain agile in a dynamic market, and position itself for sustained success in the podcast industry.

  • Yahoo announces major layoffs, 20% of staff to be affected

    Yahoo announces major layoffs, 20% of staff to be affected

    Yahoo announced in a statement on Thursday that they will be cutting more than 20 per cent of their workforce by the end of 2023, starting with the elimination of 1,000 positions this week.

    The company, which was acquired by private equity firm Apollo Global Management in September 2021, had a headcount of around 10,000 employees at the time of acquisition, according to PitchBook data.

    However, recent reports by Axios indicate that the current headcount may be closer to 8,000 employees, with more than 1,600 workers set to lose their jobs in the latest round of cuts.

    The recent layoffs at Yahoo are part of the company’s plan to simplify its advertising unit’s operations. A spokesperson for the company stated that the strategy for the Yahoo for Business segment failed to meet the company’s expectations in all aspects. These layoffs are a step towards rectifying the situation and ensuring the business segment operates more efficiently.

    “Given the new focus of the new Yahoo Advertising group, we will reduce the workforce of the former Yahoo for Business division by nearly 50 per cent by the end of 2023,” a Yahoo spokesperson told CNBC.

    Yahoo announced that it will redirect its focus to its long-standing collaboration with Taboola, a leading digital advertising firm, to enhance its advertising services. The partnership between the two companies has existed for 30 years.

    “These decisions are never easy, but we believe these changes will simplify and strengthen our advertising business for the long run, while enabling Yahoo to deliver better value to our customers and partners,” the Yahoo spokesperson said.

    According to a statement made by a representative of Yahoo to CNBC, the company has announced plans to offer severance packages to its domestic employees who have been impacted by job loss. However, the company has not disclosed the exact amount or specifics of the severance packages being offered.

    Severance packages are typically offered by companies to employees who have been laid off or let go due to a reduction in workforce, restructuring, or other reasons. These packages typically include a combination of financial compensation and benefits, such as continued health insurance, unemployment assistance, and outplacement services.

    The size and value of the severance package will depend on factors such as the employee’s length of service, position, and company policies. In the case of Yahoo, without specific details on the size or value of the severance packages, it is difficult to determine what the employees can expect to receive.

  • 1,300 workers to lose jobs as Zoom adapts to global economic uncertainty

    1,300 workers to lose jobs as Zoom adapts to global economic uncertainty

    Zoom Video Communications, the company behind the widely-used video conferencing platform, announced plans to lay off approximately 15 per cent of its workforce on Tuesday.

    In a blog post, CEO Eric Yuan disclosed that he will be taking a 98 per cent reduction in salary and forgoing his executive bonus this year. Members of the executive leadership team will also receive a 20 per cent reduction in salary and forfeit their bonuses.

    Despite continued reliance on Zoom as the world adjusts to post-pandemic life, the company is facing reduced spending from customers, as stated by Yuan. This has led to the difficult decision to lay off around 1,300 employees.

    Owing to the challenges posed by the pandemic, Yuan expressed pride in the company’s ability to keep people connected and noted that the company’s employee count tripled during the pandemic due to the platform’s widespread use for remote work, court hearings, and social events.

    “We are seeing that people and businesses continue to rely on Zoom,” Yuan said.

    “But the uncertainty of the global economy, and its effect on our customers, means we need to take a hard look inward to reset ourselves so we can weather the economic environment, deliver for our customers and achieve Zoom’s long-term vision.” Zoom will continue to invest in strategic areas, the chief executive noted.

    Zoom has joined the trend of US tech companies reducing their workforce amid global economic challenges and a shift towards cost-saving measures.

    American computer company, Dell, announced plans to lay off around 5 per cent of its global workforce, or approximately 6,650 employees. These job cuts follow similar moves made by tech industry giants such as Microsoft, Facebook, Alphabet (Google’s parent company), Amazon, and Twitter as the industry prepares for economic uncertainty.

    The cuts come after a period of significant hiring during the peak of the COVID-19 pandemic, when companies were attempting to meet the increased demand for online work, education, and entertainment. According to the job loss tracking site, Layoffs.fyi, over 95,000 tech employees have lost their jobs since the start of the year.

  • Amazon to cut over 18,000 jobs citing economic uncertainty

    Amazon to cut over 18,000 jobs citing economic uncertainty

    Amazon has announced it will cut more than 18,000 jobs from its workforce, the largest set of layoffs in the US company’s history, as it battles to save costs.

    The company’s e-commerce and human resources departments will be primarily impacted by the layoff decisions, which Amazon will announce on January 18.

    The layoffs represent 6 per cent of Amazon’s almost 300,000 corporate employees and are a striking turnabout for a business that just tripled its base pay level in an effort to compete more fiercely for talent, according to BBC.

    With around 1.5 million employees overall, including warehouse workers, Amazon is the second-largest private employer in the United States (US), after Walmart Inc.

    CEO Andy Jassy claimed in the message that the unstable economy and the increased hiring over the last few years have made this year’s annual planning more difficult.

    Amazon, whose stock price has more than halved in the past year, has prepared for slower growth as rising inflation has led both businesses and consumers to reduce spending. The company’s financial situation has drastically declined. It changed from a delivery service that was deemed essential during the epidemic to one that was overbuilt in comparison to overall demand.

    Jassy’s statement was published after the Wall Street Journal reported that over 17,000 staff would be let go. He claimed that as a result of a leak, Amazon decided to break the news without first informing worried staff.

    Amazon plans to pay severance and is still required to submit some legal notices regarding significant layoffs. Jassy claims that Amazon has survived unstable and difficult economic times in the past and will do so in the future.