Spotify Chief Executive Officer Daniel Ek informed the staff via email on Wednesday (Jun 15) that the audio streaming company would reduce its hiring by 25 per cent, according to a source familiar with the contents of the email.
Ek said Spotify would continue hiring, though it would slow the pace "and be a bit more prudent" of over the next few quarters.
Shares hit a session high shortly after Reuters and other media reported the news and were last up 7.1 per cent.
Spotify Chief Financial Officer Paul Vogel said the company was watching the uncertainty in the global economy during an investor conference earlier this month. Although it had yet to see a material impact on business, he said, “We are keeping a close eye on the situation and evaluating our headcount growth in the near term.”
Earlier this month, Spotify offered investors an upbeat assessment of its business, predicting that its investments in podcasting and audiobooks would fuel growth over the next decade.
It joins a number of companies that have slowed hiring or announced layoffs in response to rising inflation and fallout from the Ukraine crisis.