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Spotify will reduce total headcount by approximately 17%

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Re: Spotify will reduce total headcount by approximately 17%

#471

Post by vlowrian »

ulfw wrote: post #448
Hakeemmidan wrote: post #445

Why do these mass layoffs keep happening in the software industry? Or is this a global phenomenon that exists across all industries?

Only to a small extend. Mostly it happens in software. And no it's not just "overhiring" (that doesn't happen across so many industries). That's only part of it. We all know with AI we won't need white collar jobs anymore. If I had children I wouldn't allow them to study CS. Not anymore.

I feel like you're overestimating the impact of AI on the current wave of dismissals. It's hard to say without any actual data, but there seems to be a lot of FUD regarding AI replacing white-collar and CS jobs.

I don't have better data than you, but I'd be very much surprised if AI would replace computer scientists rather than being a tool which will change what we'll have to be good at as computer scientists.

There is a lot of digitalisation to be done and AI might change the price of doing that, but it won't make a whole academic discipline obsolete.

Re: Spotify will reduce total headcount by approximately 17%

#472

Post by nojvek »

Post-pandemic, the trend of Corporations raking in higher and higher profits, while needing fewer and fewer staff scares me.

The most obvious and likely outcome is it drastically separates the ultra wealthy from middle class.

With rise of AI and automation, that trend will likely accelerate. The top 10% hold more than 50% of wealth. It's likely in a few decades, the top 1% will hold more than 50% of the wealth. They already hold 28% of wealth.

https://fredblog.stlouisfed.org/2022/10/the-wealthiest-0-1-o...

https://fred.stlouisfed.org/graph/?g=UdXz

Re: Spotify will reduce total headcount by approximately 17%

#473

Post by boiler_up800 »

makestuff wrote: post #466
apwell23 wrote: post #421

Earlier quoted context omitted.

Yea I worked at groupon when it was taking off and we had around 200 sales ppl calling up and negotiating deals with local business. Everyone back then used to ask me the same question: Why does groupon have 500 ppl, isnt' it just a wordpress site.

It is a shame for Chicago that groupon didn't continue to find success. I really think that if they had continued to grow the Chicago tech scene would be significantly larger than it is today.

Absolutely agree. I’m not sure I can name another name brand Chicago tech company, which is devastating for their startup and venture ecosystem.

Re: Spotify will reduce total headcount by approximately 17%

#474

Post by whiddershins »

loandbehold wrote: post #95
epistasis wrote: post #64

Earlier quoted context omitted.

What revenue do these listeners bring?

Spotify makes money through ads for non-paying users and subscription fees from paying users. For non-paying users, time listened translates into ad impressions. New content also brings in new paid subscribers, as it makes subscription more valuable to the user allowing listening without ads.

Also, even when you pay, Rogan still has ads.

Re: Spotify will reduce total headcount by approximately 17%

#475

Post by abtinf »

makestuff wrote: post #466
apwell23 wrote: post #421

Earlier quoted context omitted.

Yea I worked at groupon when it was taking off and we had around 200 sales ppl calling up and negotiating deals with local business. Everyone back then used to ask me the same question: Why does groupon have 500 ppl, isnt' it just a wordpress site.

It is a shame for Chicago that groupon didn't continue to find success. I really think that if they had continued to grow the Chicago tech scene would be significantly larger than it is today.

Especially if they had succeeded in building the dome.

Re: Spotify will reduce total headcount by approximately 17%

#476

Post by dboreham »

thiago_fm wrote: post #3

They need a bigger cut. 17% will not have a big enough impact to its bottom line. They need to have enough money to invest in other initiatives, as the business they are in is proven to be margin-thin. Apple and Amazon will eventually eat Spotify given enough time, if they don't find a moat to be built

Perhaps this cut is a precursor to being acquired by someone like Apple?

Re: Spotify will reduce total headcount by approximately 17%

#477

Post by throwaw12 »

philistine wrote: post #340
throwaw12 wrote: post #329

Earlier quoted context omitted.

> Spotify was a stand-out, almost no large tech company bought into cloud like they did Isn't this what made Spotify success? Yes, they could have build their own datacenters, but someone else could outcompete them in the meantime. They have traded off something for another thing.

I don't think one of you has to be wrong for another one to be right. Should Spotify have focused on its core competency early in its life? Sure. But at some point in the long years since, Spotify should have 100% looked at their cloud bills and built a way out of that lock-in.

> Spotify should have 100% looked at their cloud bills and built a way out of that lock-in.

Absolutely, but everything has ROI, ROI of fixing cloud bills were probably smaller than "possible growth"

Now they know which features failed, they can start deprecating or stop growing them and refocus on cloud bills

Re: Spotify will reduce total headcount by approximately 17%

#478

Post by rchaud »

5350-uiop-1130 wrote: post #354

"..Spotify had taken advantage of cheap borrowing during 2020 and 2021, when central bankers cut interest rates sharply in response to coronavirus pandemic lockdowns" > “Embracing this leaner structure will also allow us to invest our profits more strategically back into the business,” > invest our profits more strategically back into the business why didn't they do this in 2020 when they got zero interest loans and…

They invested the pandemic ZIRP bonanza on the 'transformative' IP that is podcasts.

In lieu of actual profitability, they also chucked in $1bn to buy up their own stock to maximize the CEO's already enormous compensation.

https://techcrunch.com/2021/08/20/spotify-to-spend-1b-buying...

Re: Spotify will reduce total headcount by approximately 17%

#479

Post by TexanFeller »

nojvek wrote: post #472

Post-pandemic, the trend of Corporations raking in higher and higher profits, while needing fewer and fewer staff scares me. The most obvious and likely outcome is it drastically separates the ultra wealthy from middle class. With rise of AI and automation, that trend will likely accelerate. The top 10% hold more than 50% of wealth. It's likely in a few decades, the top 1% will hold more than 50% of the wealth. They…

Things are probably just going back to normal. Companies went on hiring binges while unprecedented cash was pumped into the economy and interest rates were historically low. Now that all that is being walked back employment levels are going back to 2019 or a bit before.

Re: Spotify will reduce total headcount by approximately 17%

#480

Post by cglan »

nojvek wrote: post #472

Post-pandemic, the trend of Corporations raking in higher and higher profits, while needing fewer and fewer staff scares me. The most obvious and likely outcome is it drastically separates the ultra wealthy from middle class. With rise of AI and automation, that trend will likely accelerate. The top 10% hold more than 50% of wealth. It's likely in a few decades, the top 1% will hold more than 50% of the wealth. They…

isnt this just massive overhiring due to free money during the pandemic? Not sure this is an example of needing fewer and fewer stuff. Spotify is just not profitable except barely like 1 quarter
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