Spotify Lays Off 17% of Workforce Amid Slowing Growth and Looming Debt Burdens
• Spotify laying off 1,500 employees, about 17% of its workforce, citing slower economic growth and higher debt refinancing costs
• Reminder of "debt-market time bomb" for many companies after years of low interest rates
• Spotify carrying $1.3B in debt from 2021 that comes due in 2026
• Must cut costs to be able to pay off debt or refinancing will be much more expensive
• Fed interest rate hikes making borrowing costs spike, could lead to more corporate bankruptcies and defaults