Spotify has joined the ranks of tech companies laying off employees, saying it is laying off 6% of its employees.

The tech industry has been especially hard-hit by the economic downturn following a couple of years of breakneck hiring during the pandemic. Spotify is no exception, with CEO Daniel Ek sharing a note with employees informing them of the layoffs.

While we have made great progress in improving speed in the last few years, we haven’t focused as much on improving efficiency. We still spend far too much time syncing on slightly different strategies, which slows us down. And in a challenging economic environment, efficiency takes on greater importance. So, in an effort to drive more efficiency, control costs, and speed up decision-making, I have decided to restructure our organization.

Ek made it clear that, like many business leaders, he underestimated the post-pandemic economy.

Like many other leaders, I hoped to sustain the strong tailwinds from the pandemic and believed that our broad global business and lower risk to the impact of a slowdown in ads would insulate us. In hindsight, I was too ambitious in investing ahead of our revenue growth. And for this reason, today, we are reducing our employee base by about 6% across the company. I take full accountability for the moves that got us here today.

Laid off employees will receive an average of five months of severance pay, pay for all unused vacation time, healthcare during their severance period, as well as immigration and outplacement support.