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• Company is ‘keeping a close eye on the situation’ and evaluating headcount growth
Spotify Technology SA (NYSE: SPOT) will reduce its hiring by 25%, Chief Executive Officer Daniel Ek has informed the staff via email on Wednesday, Reuters reported, citing people familiar with the matter.
Ek said Spotify would continue hiring, though it would slow the pace “and be a bit more prudent” over the next few quarters.
Shares of the audio streaming company hit a session high shortly after the news was published and closed at $105.36, after rising 7.45%.
Spotify Chief Financial Officer Paul Vogel said the company was watching the uncertainty in the global economy during its first investor conference since going public in 2018 earlier this month.
The company also offered an upbeat assessment of its business, predicting to reach $100 billion in revenue annually in the next decade.
Although Spotify had yet to see a material impact on business, Ek said, “We are keeping a close eye on the situation and evaluating our headcount growth in the near term.”
Spotify joins a number of companies that have slowed the hiring process or announced layoffs in response to rising inflation and fallout from the Russia-Ukraine crisis.
Picture Credit: Engadget
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