Apple Music Competitor Spotify Lays Off Over 1,000 Employees

[DFP1989]

Apple Music Competitor Spotify...​

What kind of ridiculous headline is this, are you guys for real?

You say it as though Spotify is some scrappy, unknown and failing startup that is attempting to challenge the incumbent.

Spotify launched almost ten years earlier and has more than five times the user base, there is no reason for Apple Music to be mentioned in the headline (at the beginning no less!).

 

[Abazigal]

Inflation and increasing interest rates leads to tough outcomes. No fun.

I doubt it's anything to do with that. Spotify has never been profitable (because of their flawed business model), and this has nothing to do with Apple or their App Store rules.

It's quite ironic when you think about the companies accusing Apple of being a monopoly.

Epic Games - https://www.ftc.gov/news-events/new...tnite-players-who-were-charged-unwanted-items

Spotify - what's their excuse when users are not no longer able to subscribe in-app? They just had a bad business model and were trying to distract investors from the reality of the situation.

Hey - A university recently stopped subscribing to Basecamp because of controversial remarks made by one of the company's founders, DHH.

Why We're Dropping Basecamp - Duke University Libraries Blogs

We at Duke University Libraries have decided to stop using the project management platform, Basecamp, to which we have subscribed for almost a decade. We came to this decision after weighing the level of its use in our organization, which is considerable, against the harms that we see...

blogs.library.duke.edu

You’re fired! “Delivered Trump Style”

How would you like that as an early Xmas present?

I wonder what the mood is like for the remaining employees. Sure, they get to keep their job, but when you consider that Spotify hasn't been profitable, you have to wonder just how long they can afford to keep the gig running, and whether they should also start looking at an exit plan. It may also mean more work spread out amongst fewer employees, and just heightened tension and lower morale overall.

At least the personnel retrenched get some extra money to tide them over the next few months while they look for another job (and hopefully they do). If anyone else wanted to do the same at this point, they get nothing.

 

[Ralfi]

Only reason to fire someone at Spotify is for coming up with the the idea of removing the "Play Radio" option from every song/album/playlist.

Why do 'the holidays' matter? Getting laid off at any time sucks. And with 5 months severance pay, the holidays might actually be pretty bright.

Because it's the hardest time to find a job as many businesses take a break (most would want to find a new position ASAP).

 

[coffeemilktea]

What's going to happen to all those people who make "Day In the Life of a Spotify engineer / analyst / data-scientist / etc" videos on YouTube?!?!?!

Won't anyone think of the poor influencers and vloggers who make videos of themselves working from home in an ✨aesthetic✨ way and posting it on YouTube? How will they film themselves preparing food and talking about random topics while sorta working if they get laid off from their cushy six figure WFH jobs? 🤡

 

[triptolemus]

"Spotify employees that are impacted by layoffs will be notified by Tuesday, December 5."

It's always nice learning that your company is RIF'ing a 1000 people from the media, and one of those might be you. Dick move not telling your employees first. Is Bill Lumberg in charge of this reduction in force?

**BY ** Tuesday December 5. Not ON Tuesday Dec 5.

 

[needsomecoffee]

Know someone who was with HP when Carli announced a 20% reduction in workforce. He said Carli out-sourced the decision to some consultancy. Just destroyed morale in the weeks it took to implement and forever afterward. Sorry for the Spotify folks. Somehow C-Level execs who get companies into these mass layoff sits never seem to suffer any consequences from their boards for getting the company into these situations.

 

[DakotaGuy]

If Spotify is having issues financially it’s probably a good time for Apple to swoop in and buy them out. The only way streaming becomes profitable is with less competition.

 

[citysnaps]

Layoffs suck period. Wish those who got impacted the best.

They sure do. Especially mass layoffs.

A huge hat-tip to Tim Cook for not resorting to mass layoffs like so many tech companies have (Amazon, Facebook, Adobe, Salesforce, Twitter, Tesla, Yahoo, google, Microsoft, Salesforce, IBM, SAP, Vimeo, Zoom, Nokia, LinkedIn, Roku, HP, etc).

 

[MrRom92]

Wow. When Spotify doesn’t do lossless, they REALLY don’t do lossless.

 

[jz0309]

They sure do. Especially mass layoffs.

A huge hat-tip to Tim Cook for not resorting to mass layoffs like so many tech companies have (Amazon, Facebook, Adobe, Salesforce, Twitter, Tesla, Yahoo, google, Microsoft, Salesforce, IBM, SAP, Vimeo, Zoom, Nokia, LinkedIn, Roku, HP, etc).

Yep, lots of people here don’t have that perspective…

 

[WarmWinterHat]

If Spotify is having issues financially it’s probably a good time for Apple to swoop in and buy them out. The only way streaming becomes profitable is with less competition.

That's the worst idea I've read in a while. In addition, there is little no chance that governments would approve the merger; nor should they.

Less competition leads to increased consumer prices.

 

[BuffaloTF]

If Spotify is having issues financially it’s probably a good time for Apple to swoop in and buy them out. The only way streaming becomes profitable is with less competition.

I’m pretty sure the way Spotify becomes profitable is simply by ending the free tier so the paying customers can stop subsidizing them. The problem is pretty evident with the note they added 23 million users but only 6 million were subscribers. So 75% of your users are taking a free ride? That’s not a recipe for success.

 

[Bigkool2inSC]

Someone please tell me which week or month of the year is a good time to lay off poeple since this time of the year is not a good time....

for those that understand business, quarters, fiscal years, dividends, etc., it's all about how the next year will start on paper.....

 

[1129846]

They sure do. Especially mass layoffs.

A huge hat-tip to Tim Cook for not resorting to mass layoffs like so many tech companies have (Amazon, Facebook, Adobe, Salesforce, Twitter, Tesla, Yahoo, google, Microsoft, Salesforce, IBM, SAP, Vimeo, Zoom, Nokia, LinkedIn, Roku, HP, etc).

Oh Apple still doing layoffs but they are cutting contractor staffs at a very fast level just not full time staff.

The life of contractors is rough.

 

[Howard2k]

****, I hope the CEO has enough money!

 

[1129846]

Why do 'the holidays' matter? Getting laid off at any time sucks. And with 5 months severance pay, the holidays might actually be pretty bright.

It tends to ruin family vacations or plans and it is rough.

Last year I got laid off last year the Friday before Thanksgiving as a thank you after I " Saved the app" working some insane late hours 2 weeks before and then 2 days before was able to get it back online after they killed critttle servers. Was funny a year later to the day the all stopped working for 48 hours. Kicked was I called it happening.

Either way the layoff kind of put a sour note over my wife and mine family Thanksgiving and Christmas plans. The money was already spint, my wife stressing about loss of income. She still had to have a surgery afterwards. It put a damper on my kids birthday. Just kind of ruins things. Plus at this point almost all the money is already committed so not like fast adjustments can be made.

I was fine as by the end of the year got a new job which included a promotion and more pay plus over all just happy. Never would of gotten it if I was not laid off as while I was looking the orginal opening would of been a lateral move with same pay to what would of felt riskier. Worked out for the better.

As for the 5month severance. The market is rough. 5 months is not going to always work when people are looking for 6+ months right now and still eating a pay cut. 3 months is about the min turnaround time from start to starting new job. Then still 1 more month until benefits kick in. That is in good times. They are not going to get to start really looking until 2nd week in jan interviews starting end of jan and those are exhausting.

 

[DwayneDwibbley]

That is true, but five months severance is a better deal than many who are getting laid off lately are being offered.

it’s based on tenure and the local area requirements. On average employees are getting 5 months. Who knows how many actually will get the five months. If they treat their employees like they do artists not many will.

 

[TheMountainLife]

That is true, but five months severance is a better deal than many who are getting laid off lately are being offered.

Right?! I have a friend that was laid off from Meta recently and received like 6 months of severance. He's currently living his best life. Getting laid off from a big corp has its perks if you're in tech. Easy to find the next gig.

 

[DEMinSoCAL]

Why do 'the holidays' matter? Getting laid off at any time sucks. And with 5 months severance pay, the holidays might actually be pretty bright.

Mr. Sympathetic here...I guess if you crashed your car, broke up with your partner and your dog/cat ran away all on your birthday, it's just like any other day right? "The Holidays" (Christmas, religious or not) is supposed to be a special, happy time, not one where you worry if you'll have income next month. Sheesh...

 

[DEMinSoCAL]

Right?! I have a friend that was laid off from Meta recently and received like 6 months of severance. He's currently living his best life. Getting laid off from a big corp has its perks if you're in tech. Easy to find the next gig.

That's how I felt during COVID shutdown. PPP checks rolling in, no work and just relaxing. Alas, good times come to an end and how good does a resume look with a big 6-month hole in it?

 

[antiprotest]

As I understand it, companies tend to do mass layoffs before the holidays to get the numbers where they want them to be on financials and projections.

Doesn't justify it in terms of the financial and emotional impact to those affected, but that's the reason.

 

[GMShadow]

I doubt it's anything to do with that. Spotify has never been profitable (because of their flawed business model), and this has nothing to do with Apple or their App Store rules.

Correct, but it's important they keep lying to investors and claiming that profits are just around the corner, if only governments would cripple their competitors first.

Ek is both a liar and not nearly as smart as he thinks he is, which is what makes him dangerous.

 

[RevTEG]

Just in time for Christmas.

Layoffs stink at anytime. However, 5 months severance pay leaving the holiday season off and still paid isn‘t a completely bad deal.

 

[robd003]

Why did Spotify need almost 6,000 employees in the first place?!?

 

[jdoyle]

soooo the musicians make hardly any money from streaming, the company is crying poor. Just who is making money from all that subscription revenue?