CEO Daniel Ek said in an email to employees that the company will “continue to still hire and grow, we are just going to slow that pace and be a bit more prudent with the absolute level of new hires over the next few quarters,” according to CNBC.
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Spotify is the latest company to scale back hiring amid turmoil in the public markets and a possible recession. Other companies such as Uber, Microsoft and Instacart have all said they will slow down hiring in light of the macroeconomic conditions (the S&P 500 closed in bear market territory this week).
U.S.-based tech companies, both public and private, have laid off more than 21,000 employees as of this week. But that number is likely much higher. For some reported layoffs it’s unclear how many employees were let go, and layoffs at some companies go unreported.
Tech companies have been hit the hardest amid volatility in the public markets. And layoffs appear to be affecting late-stage private tech companies the most, according to a Crunchbase News analysis of aggregated layoff data. For tech companies based in the United States that have initiated layoffs, more than half of the companies in our database had raised a Series C round or beyond. Public tech companies and early-stage startups have gone through layoffs as well, but not nearly as frequently as late-stage startups (you can read more about the breakdown here).
While Spotify is the latest to slow down hiring, it likely won’t be the last.
- Tech Layoffs Analysis: Late-Stage Startups Are Hit The Hardest
- Related: Tech Layoffs In 2022: The U.S. Companies That Have Cut Jobs
Illustration: Dom Guzman
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