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Home Business

5 times tech firms’ job cuts have gone viral

Which vendors have failed to "read the room" when trimming fat during the tech downturn?

Doug Woodburn by Doug Woodburn
17 July 2024
in Business, Indepth, News, Vendor
5 times tech firms’ job cuts have gone viral
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Spotify

HR fail: Toxic positivity

What happened?

Spotify CEO Daniel Ek was accused of missing the mark when he informed staff in January 2023 that 6% of them would be losing their jobs.

Ek admitted in the memo he had been “too ambitious in investing ahead of our revenue growth”, adding that he took “full accountability for the moves that got us here today”.

But in a possibly misjudged ‘every cloud…’ moment, Ek went on to say that the changes will allow him to “get back to the part where I do my best work”.

Why the backlash?

The letter smacked of David Brent’s “there’s good news and bad news” speech, where The Office boss broadcasts news of his promotion just after telling staff they may lose their jobs.

There simply is no bright side if you’ve lost your job, with executive coach Brooks Scott describing the comment as “a powerful example of toxic positivity”.

“You must first consider the people, your people, whose lives have been disrupted. Lead with empathy. Talking about, or in any way putting oneself at the center – sending the message of ‘what’s in this for me’ – is not appropriate,” advisor and thought leader Coco Brown said in a LinkedIn post.

Controversial quote

“Personally, these changes will allow me to get back to the part where I do my best work — spending more time working on the future of Spotify — and I can’t wait to share more about all the things we have coming.”

Blowback rating: 8/10

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