Spotify the latest tech company to slow down hiring
Music streaming service Spotify said it would slow hiring by 25%, CNBC reported this week.
CEO Daniel Ek said in an email to employees that the company “will continue to hire and grow, we’re just going to slow that pace and be a little more cautious 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 cut hiring amid turbulent public markets and a possible recession. Other companies such as Uber, Microsoft and Instacart all said they would slow hiring given macro conditions (the S&P 500 closed in bearish territory this week).
In addition to fewer new hires, companies such as Coinbase have rescinded job openings and nearly 100 U.S.-based tech companies have laid off staff, according to a tally from Crunchbase News.
US-based tech companies, both public and private, laid off more than 21,000 employees this week. But that number is probably much higher. For some reported layoffs, it is not known how many employees were laid off, and layoffs at some companies are not reported.
Tech companies have been hardest hit by public market volatility. And the layoffs appear to be affecting late-stage private tech companies the most, according to a Crunchbase News analysis of aggregate layoff data. For US-based tech companies that initiated layoffs, more than half of the companies in our database had raised a Series C round or above. Public tech companies and early-stage startups also suffered layoffs, though not as frequently as later-stage startups (you can read more about the breakdown here).
Although Spotify is the latest to slow down hiring, it probably won’t be the last.
Illustration: Dom Guzman
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