Spotify Technology (ticker: SPOT) is the latest company to announce its decision to slow hiring amid global economic uncertainty. The company said it would slow down hiring growth by 25%.
According to sources, an email was sent to Spotify staff saying the company “would reduce hiring growth by 25%” and that it would “continue to still hire and grow, we are just going to slow the pace and be a bit more prudent with the absolute level of new hires over the next few quarters.”
Spotify Chief Financial Officer Paul Vogel said, “We are clearly aware of the increasing uncertainty regarding the global economy. And while we have yet to see any significant impact to our business- we are keeping a close eye on the situation and evaluating our headcount growth in the near term.”
Spotify joins a long list of tech companies that have announced similar slow-downs in their hiring processes, such as Microsoft (ticker: MSFT), Meta Platforms (ticker: META), Twitter (ticker: TWTR) and Uber Technologies (ticker: UBER).
The company’s shares climbed 8.6% on Wednesday, landing at $106.02, getting a much-needed boost from a stock upgrade by Wells Fargo analyst Steven Cahall to Equal Weight from Underweight. Cahall also went ahead to increase his price target from $101 to $124 in the hope that the company could get more profitable.