Why is Spotify shutting offices globally next week?

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Online music streaming platform Spotify will close all its offices across the world next week for the employees to ‘recharge, focus on themselves and do something that brings them joy’. The company’s chief human resources officer Katarina Berg made the announcement on Spotify’s HR Blog.

Last year, the company had closed its offices for the ‘Wellness Week’ for its employees to put some extra focus on their wellness.

“With this extra week of paid time off, it’s our hope that our employees around the world can take the time they need for themselves, and return to work revitalised, refreshed and energised”, the Spotify blog read.

The Stockholm-based audio streaming platform recalled the 2021 Wellness Week it had observed, stating that some employees travelled to new countries while others connected with old friends.

Stressing the need for a break which benefits all human being, Spotify hailed its employees for their resilience as the wold faces challenging situation.

“And we’re proud of our people-first approach and the flexibility we offer with initiatives like these. Not every business in the world can shut down their offices for an entire week, but every organisation and HR team should be doing what they can to focus on the health, safety and well-being of their workforce”, the blog post read.

On Wednesday, Spotify’s shares fell by 9.5 per cent, the biggest intraday decline since May 9.

In a conference call with the investors, the company’s chief executive officer Daniel Ek said he was considering price rise for its streaming product in the United States, but wished to discuss this move with the record labels that provide the music, Bloomberg reported.

Recently, Spotify’s rival Apple increased the price of its music service by $1 to $10.99 a month for the individuals.

Spotify’s third-quarter ad revenue increased 19%, but the company said sales were slower than expected due to a “challenging macro environment.” The company joins other tech giants, including Alphabet Inc. and Snap Inc., in reporting slower ad sales.

(With Bloomberg inputs)


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