Spotify will cut hiring by 25 percent

According to an internal memo from Bloomberg, Spotify is cutting its new hires by 25 percent as recession fears mount. However, it is unclear which parts of the business will be most affected.

Spotify is far from the only tech company to reassess its staff as the stock market plunges. Both Twitter and Meta announced some degree of hiring freezes last month, and Netflix made headlines in April for its layoffs, particularly on the internal fan site Tudum.

During Spotify's investor presentation last week, CEO Daniel Ek emphasized the company's growth in subscriptions and in verticals beyond music, such as podcasting and audiobooks. But CFO Paul Vogel hinted at the event that staffing could be affected by economic conditions.

"We are clearly aware of the increasing uncertainty regarding the global economy," Vogel said. "And while we have yet to see any material impact to our business, we are keeping a close eye on the situation and evaluating our headcount growth in the near term."

Spotify had more than 6,600 employees at the end of 2021, according to an SEC filing, an 18 percent increase from a year earlier. Although the market may force the company to curb its ambitions, Ek said in the staff memo that the company will still add staff.