Spotify is the latest tech company to announce a hiring slowdown. However, the streaming giant intends to still add to its overall headcount by the end of the year.
In an email to employees, Spotify CEO Daniel Ek said he intended to “slow that pace [of hiring] and be a bit more prudent with the absolute level of new hires over the next few quarters.” (Hat tip to Crunchbase for reproducing that email.)
Spotify joins Coinbase, Microsoft, Uber, Netflix, and other tech companies in either slowing or freezing hiring. But according to a Crunchbase analysis, it’s late-stage startups that have absorbed the biggest blows in terms of recent slowdowns and layoffs, for a couple of simple reasons. First, these startups generally tend to burn quickly through capital, and often haven’t begun to produce substantial revenues; thus, they’re more sensitive to economic conditions. Second, their hiring moves are often done preemptively, allowing the company to retain more cash for whatever lies ahead.
Throughout the U.S., though, demand for technologists remains high. Employers posted some 623,627 tech positions in May, representing a year-over-year increase of 52 percent; unemployment rate for tech occupations hit 2.1 percent, a slight uptick from previous months. Companies in all industries still need all kinds of technologists to keep their operations running.
And as Ek mentioned in his email, Spotify continues to hire. Software engineers at Spotify can make generous salaries, according to a crowdsourced breakdown from levels.fyi (and yes, crowdsourcing isn’t always the most scientific way of determining salaries; however, as the ranges presented on levels.fyi tend to correspond with other sources, we’re inclined to trust them). For example, entry-level engineers can make $131,875 in annual salary, combined with $22,312 in stock and $2,812 in bonuses. By the time they ascend to the staff engineer level, they can make $235,533 in salary, $69,600 in stock, and a $4,200 bonus (if not more).