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Spotify reducing employee base by about 6%

newsroom.spotify.com

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Re: Spotify reducing employee base by about 6%

#271

Post by coldpie »

zajio1am wrote: post #116
Frost1x wrote: post #76

Earlier quoted context omitted.

The problem is, once you adopt this mentality, there's often pushback that you should also consider labor just like a business acting in self interest. Labor should focus on their profits (comp vs time vs benefits of concern) and optimize on those, just as businesses do in terms of employment. Labor should aim to do the least work possible for the most compensation and only do what gets by. Labor too is not a benevel…

I would say that both sides have social obligations to fulfill their part of a contract according to their best effort while the contract is active, but also both sides are free to change / terminate contract (with respect to contract terms and laws) - both employer doing layoffs, or employee asking for raise or leaving the job.

The equation isn't equal, though. A company losing an employee has a very different impact on that company than an employee losing their employment has on that employee.

Re: Spotify reducing employee base by about 6%

#272

Post by popularrecluse »

paulcole wrote: post #229
popularrecluse wrote: post #158

Earlier quoted context omitted.

We just live in a world now where propagating false and dangerous misinformation is merely offering a differing point of view. We were happy to let subject-matter experts help build the modern world, but then turn on them as we seek out the information that comports with the way we wish the world to be. It's good to be skeptical, but a very significant portion of the population has serious epistemic deficiencies.

I honestly don't have a clue what you're talking about here. My point was that you can think Elon Musk is a jackass and not buy a Tesla even if you do think Jeff Bezos is a jackass and still shop at Amazon.

I responded to a comment upstream from yours on your comment, because yours was the last I read and I was continuing the train of thought. Sorry for the confusion.

Re: Spotify reducing employee base by about 6%

#274

Post by juve1996 »

danjac wrote: post #87
mrweasel wrote: post #23

Earlier quoted context omitted.

There's still a ton of jobs out there, depending on where in the world you're able to work. They might not be as exciting, the companies aren't as well known, but they still pay fairly well and it's stable. I do feel bad for those who are losing their jobs, it's not their fault. Many of the companies currently firing people simply had too many employees to begin with. Daniel Elk even admits it: "I was too ambitious i…

What's weird is that all of these CEOs are saying the same thing: "I hired too many folks a couple years ago, welp, guess I was wrong". You would think some companies hired too many, some hired too few, others more or less just stayed the same. Instead we're seeing this groupthink of these so-called geniuses of the industry moving this way and that like a flock of sheep.

Those CEOs knew what they were doing and what they're doing isn't wrong.

Our entire economy is built on short term gain and rewards that. CEOs are worried about their quarterly numbers and are doing layoffs to lessen the blow.

Re: Spotify reducing employee base by about 6%

#275

Post by estomagordo »

schnitzelstoat wrote: post #264
phamilton4 wrote: post #127

I get needing to keep a company lean and that businesses operate to make money... But most of these recent layoffs really make me feel uneasy. Spotify is a little different because AFAIK they are still operating at a negative net income, but still let's take a look at this. They're going to let go 600 people.. that's maybe an annual 90 million in savings (150k salary). The company's revenue is about 9 billion with -3…

Aren't most of the employees based in Europe? In that case it's more like $100k or less.

Even in Sweden, where engineers earn way less than in the US, it's going to be over $100k.

On any salary you would have to add 30% payroll tax, and then maybe 15% or so in pension contributions.

Re: Spotify reducing employee base by about 6%

#276

Post by popularrecluse »

overgard wrote: post #249
popularrecluse wrote: post #158

Earlier quoted context omitted.

We just live in a world now where propagating false and dangerous misinformation is merely offering a differing point of view. We were happy to let subject-matter experts help build the modern world, but then turn on them as we seek out the information that comports with the way we wish the world to be. It's good to be skeptical, but a very significant portion of the population has serious epistemic deficiencies.

Ah "misinformation". (Which seems to be far-left speak for "has a different opinion and I'd rather censor them than argue with them".) Rogan is a comedian and has never claimed any special expertise. If you're worried that people listen to him over the legacy news media, well, what does it say about them that somehow a comedian has more credibility than they do?

There will always be an acceptable range of discourse in any society, and those that in their own ignorance and confusion spread ideas that hurt the stability and well-being of that society can expect pushback. Sorry if you wanted to say whatever bullshit you want without a challenge.

If you don't like it disconnect your internet, as you'd say.

Re: Spotify reducing employee base by about 6%

#277

Post by bastardoperator »

phamilton4 wrote: post #127

I get needing to keep a company lean and that businesses operate to make money... But most of these recent layoffs really make me feel uneasy. Spotify is a little different because AFAIK they are still operating at a negative net income, but still let's take a look at this. They're going to let go 600 people.. that's maybe an annual 90 million in savings (150k salary). The company's revenue is about 9 billion with -3…

I don't think it is that complex. Who benefits from these mass layoffs? Everyone at the top benefits, and everyone at the bottom suffers.

You are spot on when it comes to impact of layoffs. If you want to destroy productivity, firing people is a sure proof way of doing that. To your point, I can't take any executive seriously if they're not self reflecting on their own failure. Mass layoffs should equal a new board in my opinion.

Re: Spotify reducing employee base by about 6%

#278

Post by wastedhours »

eigen-vector wrote: post #32

This is probably the least tactical message amongst all the companies that have laid off people. Ek's spent most of the time rambling about efficiency and organizational changes to leadership positions who'll be least affected by the layoffs. Then comes the layoff news. It's almost as if he's rectifying someone else's mistake and everyone getting laid off should be thankful about it. I wish CEOs read some of the emai…

The whole email was just so off - I know they build up to these things, but am sure the announcement of the re-org could have waited, and could have led with the most pressing news, especially since it came in the middle of day and people had already been let go by that point.

Re: Spotify reducing employee base by about 6%

#279

Post by cgio »

shmatt wrote: post #156
phamilton4 wrote: post #127

I get needing to keep a company lean and that businesses operate to make money... But most of these recent layoffs really make me feel uneasy. Spotify is a little different because AFAIK they are still operating at a negative net income, but still let's take a look at this. They're going to let go 600 people.. that's maybe an annual 90 million in savings (150k salary). The company's revenue is about 9 billion with -3…

It's very naive to think these huge orgs don't have dead weight which is much bigger than 6%. If you start figuring some of your moonshot ideas aren't hitting their OKR's, you have a few options: * Just let them keep doing whatever without delivering what they claim they can * Create new moonshots for them just because * Move them to other products, but that doesn't mean they'll create more value as an org with (now)…

As I mature in this industry I find it hard to agree, even though I draw my experience from organisations outside the FAANG if it’s still a thing. Dead weight, is in my experience no more than 2%, where I qualify dead weight as someone who cannot add value or is actively detrimental. Most people can add more value than they currently do. Many more people do not match their capacity, but that is mostly out of bad allocation of work etc. That bad allocation could be improved with restructuring but crowded and rigid management hierarchies are often the reason organisations don’t grow at the risk of diluting the self perceived value of upper-middle management. I think this round of layoffs will see a rebalance across sectors with banking etc. looking at huge resourcing demands that are inelastic (e.g. regulation) pulling in some of the talent. Similar to Covid layoffs outside tech, my prediction is the inversion will start soon.

Re: Spotify reducing employee base by about 6%

#280

Post by shadowtree »

The core question is how many employees do you need run a stable internet business?

Stable means no massive new product lines, growth, etc.

Spotify is what it is. An app across a handful platforms, streaming infrastructure, and a legal/purchasing dept for music rights.

Does this need 7000 people? Zero chance. Is it 1000? 700? 250? No ones knows yet, but everyone remembers WhatsApp at acquisition and watches Twitter to kind of continue without 80% of its former employee base.

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