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Spotify reducing employee base by about 6%

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Re: Spotify reducing employee base by about 6%

#281

Post by [deleted] »

myth_drannon wrote: post #231
nsxwolf wrote: post #182

Earlier quoted context omitted.

I don't stay after a big round of layoffs for the same reason I'd rather buy stocks when they look like they're going up, not down. The company is signaling that it is not doing well - why shouldn't I leave for a company that is doing well? The only way I'll stay is if you want me to be part of a real plan to turn things around. And my involvement in that has to be rewarded - not just at the successful end of that pr…

The thing is there is no important signal about a specific company here, everyone is doing layoffs, the same as in previous years that everyone was in a hiring spree ignoring the actual company fundamentals. You can't just leave a company which is laying off people because everyone around you is also doing layoffs!

[deleted]

Re: Spotify reducing employee base by about 6%

#282

Post by moogly »

ben7799 wrote: post #206
default_png wrote: post #142

Earlier quoted context omitted.

Thing is though, I have probably thrown 3K into Spotify, If I cant get a "Flat rate subscription for All / Most of the music out there" - > I will 100% just go back to downloading discographies of the artists I like. People saying "Support the artists" - I don't care about the artists, I just want to listen to whatever takes my fancy, and if they can't do that at my price point, they will end up getting nothing from…

$3k is a lot of money to rent music. It's kind of odd to realize people have spent that kind of money to rent music and have nothing to show for it without continuing to spend money. $3k would still buy a very large physical collection. Most people didn't have that kind of money into a physical collection back in the day. Vinyl prices are a joke, but CDs are often cheaper than a digital download if bought new and the…

> $3k would still buy a very large physical collection

It's only a couple of hundred CDs. If you buy a lot of low-priced ones, perhaps a few hundred.

Re: Spotify reducing employee base by about 6%

#284

Post by lumost »

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)…

After 1-3 years of tenure things start to look different imo. Sure you get bad hires, and you also get people who become lazy. But on any given project you tend to have some split of people who work on the wrong things, don’t work on anything, or fail to deliver. People who consistently hit one of these categories usually move on on their own - either because of culture fit or comp growth. It’s much easier and healthier to focus on retaining your best people. As long as someone is doing something, and isn’t a net drag on the team - firing seems to be more pain then the alternative in software.

Assuming that the industry returns to its standard 30-50% attrition year on year.

Re: Spotify reducing employee base by about 6%

#286

Post by maxwell »

default_png wrote: post #237
maxwell wrote: post #165

Earlier quoted context omitted.

What is your price point? Why would artists give anything to you?

Well, I am currently on like £15 a month for 2x users on Spotify. >Why would artists give anything to you? Literally not my concern.

Spotify isn't profitable. Tidal isn't profitable. Alphabet, Amazon, and Apple probably earn a profit on their bundles, but if artists and labels aren't making money on streaming, how long until they start pulling their catalogs?

Will you stop listening to music if/when the unprofitable music streaming services shut down? What happens if/when Alphabet, Amazon, and Apple are barred from tying and bundling their services?

It seems like artists and labels will simply revert to pay per song/album and legal battles instead of wasting resources on listeners who aren't willing to pay a meaningful amount for music. At your price point, you'll probably be able go back to buying a few hundred songs / dozen or so albums a year.

Re: Spotify reducing employee base by about 6%

#287

Post by bastardoperator »

thehappypm wrote: post #220
oxfordmale wrote: post #219

Earlier quoted context omitted.

The cost picture is as follows: money saved on staff reduction - money spent on layoff packages - (temporary reduction in productivity, because of lower staff morale) Research shows there is no long-term benefit of layoffs other than the short-term gain in cash flow. Layoffs are only beneficial if they are needed for survival of the company

Lower productivity is highly questionable. I’ve really only seen layoffs boost productivity. Suddenly there is less overhead and fewer cooks-in-the-kitchen. Morale hits are real, but tend to fade if people feel confident that they’ve survived another day.

You arrived at this conclusion anecdotally. You can't do your best work with a constant cloud hanging over you, doesn't matter who you are.

Re: Spotify reducing employee base by about 6%

#288

Post by type-r »

nsxwolf wrote: post #182
disruptiveink wrote: post #177

Earlier quoted context omitted.

Pretty sure layoffs decrease productivity of the remaining employees, unless you're a H-1B visa worker, no one "works harder" after layoffs. Morale is low, resentment over "now I have to do X as well" grows and productivity gets hit.

I don't stay after a big round of layoffs for the same reason I'd rather buy stocks when they look like they're going up, not down. The company is signaling that it is not doing well - why shouldn't I leave for a company that is doing well? The only way I'll stay is if you want me to be part of a real plan to turn things around. And my involvement in that has to be rewarded - not just at the successful end of that pr…

Nearly all major tech companies have announced layoffs in the last few months. Which companies would you say are "doing well" right now?

Re: Spotify reducing employee base by about 6%

#289

Post by chitowneats »

bastardoperator wrote: post #277
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 i…

> If you want to destroy productivity, firing people is a sure proof way of doing that.

Not as sure proof as paying people to do nothing. Or worse, paying people who are actively working against the interests of the company, intentionally or otherwise.

Re: Spotify reducing employee base by about 6%

#290

Post by type-r »

grey-area wrote: post #247
polygotdomain wrote: post #101

I think we've gotten into this weird spot where tech companies are almost goading each other into layoffs. I don't doubt that there was some overexpansion during COVID, but it seems to have shifted. Tech companies have signaled to the market that staffing numbers were too high (regardless of profitability), and that investors want to see them brought back down. These layoffs don't really seem to be an indication of c…

This is a bubble imploding, this is serious. The value of money has shifted for good after a decade of excess, there is rampant inflation and there is a recession incoming. These companies have seen the writing on the wall and are making the first of many layoffs to address this. This started last year and will last another year at least, possibly a few years. Apparently most eases of this sore are still in denial ab…

Why do you say it has shifted "for good"? The Fed itself plans to bring interest rates back down actually fairly quickly [0], following a half-year of decreasing inflation rates [1].

[0] https://www.federalreserve.gov/monetarypolicy/fomcprojtabl20...

[1] https://www.statista.com/statistics/273418/unadjusted-monthl...

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