Spotify to Slow Hiring Plans, Cites Economic Uncertainty

Spotify Technology SA will slow hiring growth by 25%, the latest sign of how fears of a recession are weighing on the economy.

The world’s largest on-demand audio service has been on a hiring spree for years, adding more than 2,000 employees between 2019 and 2021 for a total of 6,617 at the end of last year. The company will continue to add headcount in the coming months, but it will adjust its plans in light of macroeconomic factors, Chief Executive Officer Daniel Ek said in a note to staff Wednesday.

Spotify suggested it would adjust its staffing at a presentation to investors last week. “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,” Chief Financial Officer Paul Vogel said at the time.

Inflation and rising interest rates have led to rising worries in the corporate world of an economic slowdown. The S&P 500 is down more than 20% this year, and technology stocks like Spotify have been hit particularly hard. Shares in the company have declined more than 50% so far this year. –Bloomberg