Spotify reducing employee base by about 6%
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 -39 million in net income. So while this move might take them into the positive net income, it's still only going to save them what? 0.1% of their revenue.I realize it's much more complex than this, but I have been looking at it this way for nearly every recent headline/company and the savings are never really that significant. I'm not saying that people who don't contribute or people who are bad employees should be kept around forever because the company is healthy. I'm just observing the financial "cost" of these laid off employees compared against the companies revenue/net income.Having been at a company that's doing layoffs and surviving multiple rounds of layoffs myself, the impact (in my opinion) on the remaining employees is quite significant. I have seen people constantly frustrated with losing team members, managers leaving once a few of their employees have left, good employees finding other employment, etc. I'm not sure what I would do in these companies positions, but it seems strange to just cut your workforce when the trend has been going up financially for your company. These types of layoffs just create negative, especially with the current state of the world. Are any of the board members taking a salary cut? Are any of the C level's taking a cut?end rant, I need to get back to work so this doesn't happen to me.