Spotify, the popular audio streaming platform, announced on June 5,its decision to lay off 200 employees in its podcast division, accounting for approximately 2 per cent of its global workforce. This move comes as part of the company’s restructuring efforts and cost-saving measures amidst a challenging economic climate.
Similar to other tech giants such as Google, Microsoft, Amazon, and Meta, which have recently implemented significant job cuts due to the global economic downturn, Spotify is also being impacted by the weakened economic outlook. Daniel Ek, CEO, Spotify, addressed the restructuring in a message to employees, explaining that the layoffs were necessary to align costs and adapt to the changing market conditions.
The layoffs have also affected Indian IT professionals working on non-immigrant work visas like H-1B and L1, as they now face uncertainty and the need to secure new employment within a limited timeframe to maintain their visa status.
A software engineer, Mounika G, who was among those laid off by Spotify, shared a heartfelt note on LinkedIn, expressing her gratitude for the opportunity to work at the company and her disbelief at the sudden turn of events. She now faces the challenge of finding a new role within 60 days to continue her stay in the United States.
Meanwhile, the Foundation for India and Indian Diaspora Studies (FIIDS) has called on the Biden administration to extend grace periods for H-1B and L1/5 visa holders, considering the widespread layoffs in the tech sector that have left many Indian-American IT professionals unemployed.
The layoffs at Spotify’s podcast division reflect the company’s strategic efforts to realign its operations and streamline costs amidst the challenging economic landscape. While the decision is undoubtedly difficult for those affected, Spotify remains committed to its long-term vision and providing a quality audio streaming experience for its users worldwide.