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Spotify to lay off 6% of workforce over surge in ‘operating expenses’

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Spotify, the online music streaming platform, says it plans to cut 600 jobs due to possible recession.

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Disclosing this in a statement on Monday, Daniel Ek, chief executive officer (CEO), Spotify, said the cut represents 6 percent of its general workforce.

He said Dawn Ostroff, the company’s chief content and advertising business officer, will depart as part of a broader reorganisation.

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According to Ek, the decision to reduce the number of employees was “difficult, but necessary”.

Further giving reasons for the job cut, the CEO said Spotify’s operating expenses (OPEX) outpaced its revenue growth by two-fold.

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“That would have been unsustainable long-term in any climate, but with a challenging macro environment, it would be even more difficult to close the gap,” he said.

“I hoped to sustain the strong tailwinds from the pandemic and believed that our broad global business and lower risk to the impact of a slowdown in ads would insulate us.

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“In hindsight, I was too ambitious in investing ahead of our revenue growth. And for this reason, today, we are reducing our employee base by about 6 percent across the company. I take full accountability for the moves that got us here today.

“My focus now is on ensuring that every employee is treated fairly as they depart.”

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The company’s move to retrench workers comes at a time when tech companies are facing a demand downturn.

In the third quarter (Q3) last year, Spotify reported ad-supported operating revenue at 19 percent higher than in 2021. Its paid subscriber base also rose 13 percent, reaching 195 million.

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However, share prices fell afterwards, citing wider industry concerns.

Spotify’s lay off is it the latest job cut in the global tech ecosystem.

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Last week, Google’s parent firm, Alphabet also said it would fire about 12,000 of its staff members.

International conglomerates like Amazon, Microsoft and Goldman Sachs have resorted to sacking workers to cope with global economic shocks.

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Speaker Tunis Pledges Support For ECOFEPA

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By Gloria Ikibah

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Speaker of the ECOWAS Parliament, Dr. Sidie Mohammed Tunis, has pledged his unflinching support for the ECOWAS Female Parliamentarians Association Network ECOFEPA in its attempts to increase participation for self-development in politics and entrepreneurship.

Speaker Tunis who stated this at the formal opening of ECOFEPA Women and Youth Leadership symposium, on the sidelines of the Extraordinary Session of the ECOWAS Parliament in Guinea Bissau, with the theme: Unleashing the potentials of Women and Youth in Politics and Entrepreneurship; asserted that the meeting epitomizes the action stage for women’s involvement in decision-making bodies.

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He also commended ECOFEPA for always beaming their search light on issues that affect women and youth in the ECOWAS Sub-region and for firmly reinforcing the need to mentor the next generation of decision makers to bridge existing gaps and bestow sound political and decision-making legacies to them, reaffirming that until they as Members of Parliament replicate ourselves in the younger generation in multiple dimensions to deliver a democratic system that is anchored on good governance and societal growth and development, they cannot credit themselves for success.

Dr. Tunis acknowledged that the event amplifies ECOFEPA’s deliberate resolve to consistently pursue the dreams of its founding Members and recommend for members of Parliament to track generational transfer of knowledge, skills and all it takes to tackle the challenges of the future ahead.

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In her address, the 2nd Vice President of ECOFEPA, Madam Gabriella Fernandes, commended the ECOWAS Commission for its outstanding support in enhancing the activities of the association to achieve its goals for women’s integration and empowerment in politics.

She said that the resources mobilized by the ECOWAS Commission will allow the association to host its upcoming symposium in Togo March 2023.

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Hon. Fernandes reiterated that the symposium will spark the beginning of efforts to launch their projects and synchronize activities in the areas of leadership and entrepreneurship, which have the propensity to boomerang and catapult women’s advancement into decision-making in the ECOWAS region.

Earlier, the Youth Representative for the West Africa Youth Assembly, Mamadu Djalo, said everyone is aware of the social pressure and barriers that women and youth face daily, in trying to climb up to the political power, and employed men in Africa who control the political powers, to ensure that such power is balanced.

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According to Djalo, Women and youth are very isolated for too long, and that there is need for the men to work together with both youth and Women to fill the sense of belonging, as the deliberation cannot be realistic without the participation of the youth and women.

She therefore called for the creation of a youth parliament in order to give them a voice.

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Again, one injured as container crushes bus in Oshodi

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By Francesca Iwambe

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A 20-ft container crushed a commercial bus in the Oshodi area of Lagos State on Wednesday afternoon, injuring a commercial bus driver.

It was gathered that this is the latest container-related accident experienced in the state in the space of three days.

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Eye witnessed confirmed that Wednesday’s accident at Oshodi was caused by a brake failure.

While the passengers in the bus were said to have escaped without an injury, the same could not be said of the bus driver whose degree of injury could not be ascertained as of press time.

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Eight people were crushed to death by a 20-ft container that fell off a truck in the Ojuelegba area of Lagos on Sunday.

This is coming barely 24 hours after the Ojuelegba tragedy, a 40-ft container fell off another truck in the Dopemu area of the state on Monday, causing traffic on the road.

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Breaking: Chairman, MiddleBelt Forum Commodore Dan Suleiman is dead

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Chairman MiddleBelt Forum, Commodore Dan Suleiman is dead.

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A source close to his family revealed to Naijablitznews.com that the Commodore suddenly fainted in his house and passed on.

Details shortly…

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