Spotify slashes staff to move faster into AI – and Wall Street loves it

  • 2023-12-19 08:00:00
  • CNN

The year 2023 was marked by frequent and significant job cuts, whether it was in giants or small businesses. Due to the advent of artificial intelligence, many employees lost their positions and were replaced by this rapidly growing technology. Between January, June and November Spotify laid off about 2290 people.

The reasoning behind these drastic changes? The company decided to invest in AI so as to increase the margins of the divisions dedicated to podcasts and audiobooks. During the past year, Spotify has suffered considerable financial losses in the podcast business, mainly due to projects that were never completed.

More specifically, during November Spotify unveiled a new collaboration with a Google service. One of Google Cloud's language models, Vertex AI Search, will take on the role dedicated to audiobook and podcast suggestions.