Music streaming giant Spotify has announced plans to reduce its workforce by around 17% in an effort to cut costs due to slower economic growth. Approximately 1,500 employees will be affected by the layoffs. One engineer, Freddie Carthy, who was laid off by the company, shared his heartbreaking story on social media platform X (formerly Twitter). Carthy had joined Spotify after Twitter underwent mass layoffs. Now, he finds himself unemployed again just before the holiday season.
In a tweet, Carthy expressed his shock and uncertainty: “Shocked to find out I’ve been impacted by the Spotify layoffs… Don’t even know what to feel right now. 1 year ago, Twitter shit the bed and I quit, right before the holidays. 1 year later, I find myself unemployed before the holidays yet again…”
Since sharing his post, Carthy has received an outpouring of support from social media users. Many expressed sympathy and offered words of encouragement during this difficult time. One user apologized and hoped that Carthy would find a new job soon, especially considering the timing before the holidays. Another user, who was also laid off and pregnant, shared their devastation and the impact on their maternity leave.
Others praised Carthy’s skills and offered assistance. One person called him an amazing human and engineer, promising to help in any way possible. Another suggested that Carthy should use his skills to create something he has ownership of, rather than relying on corporate employment.
Meanwhile, Spotify’s layoffs are part of a wider trend in the tech industry, with numerous companies cutting tens of thousands of jobs following the boom during the Covid-19 pandemic lockdowns. Spotify CEO Daniel Ek acknowledged the significance of the layoffs in a letter to employees. He explained that the company had taken advantage of lower-cost capital in previous years to invest in team expansion, content enhancement, marketing, and new verticals. However, the current economic environment, marked by slower growth and increased capital costs, necessitated the reduction in workforce.
Spotify’s decision to downsize comes despite positive earnings reports and performance. Ek acknowledged that the reduction in workforce may come as a surprise to many, but emphasized the need to align the company’s cost structure with the current economic realities.
