Tag: KATARINA BERG

An Update on January 2023 Organizational Changes

January 23, 2023

Spotify logo in white on black background

Earlier today, CEO Daniel Ek shared the following note about the company’s organizational changes with all Spotify employees.

Team, 

As we say in our Band Manifesto, change is the only constant. For this reason, I continue to reiterate that speed is the most defensible strategy a business can have. But speed alone is not enough. We must also operate with efficiency. It’s these two things together that will fuel our long-term success. With this in mind, I have some important news to share today. 

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. 

To start, we are fundamentally changing how we operate at the top. To do this, I will be centralizing the majority of our engineering and product work under Gustav as Chief Product Officer and the business areas under Alex as Chief Business Officer. I’m happy to say that Gustav and Alex, who have been with Spotify for a long time and have done great work, will be leading these teams as co-presidents, effectively helping me run the company day-to-day. They’ll tell you more about what this means in the coming days, but I’m confident that with their leadership, we’ll be able to achieve great things for Spotify.

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. 

As a part of this change, Dawn Ostroff has decided to depart Spotify. Dawn has made a tremendous mark not only on Spotify, but on the audio industry overall. Because of her efforts, Spotify grew our podcast content by 40x, drove significant innovation in the medium and became the leading music and podcast service in many markets. These investments in audio offered new opportunities for music and podcast creators and also drove new interest in the potential of Spotify’s audio advertising. Thanks to her work, Spotify was able to innovate on the ads format itself and more than double the revenue of our advertising business to €1.5 billion. We are enormously grateful for the pivotal role she has played and wish her much success. In the near term, Dawn will assume the role of senior advisor to help facilitate this transition. Alex will take on the responsibility for the content, advertising and licensing work going forward and you’ll hear more from him on that. 

The need to become more efficient

That brings me to the second update. As part of this effort, and to bring our costs more in line, we’ve made the difficult but necessary decision to reduce our number of employees. 

Over the next several hours, one-on-one conversations will take place with all impacted employees. And while I believe this decision is right for Spotify, I understand that with our historic focus on growth, many of you will view this as a shift in our culture. But as we evolve and grow as a business, so must our way of working while still staying true to our core values. 

To offer some perspective on why we are making this decision, in 2022, the growth of Spotify’s OPEX outpaced our revenue growth by 2X. That would have been unsustainable long-term in any climate, but with a challenging macro environment, it would be even more difficult to close the gap. As you are well aware, over the last few months we’ve made a considerable effort to rein-in costs, but it simply hasn’t been enough. So while it is clear this path is the right one for Spotify, it doesn’t make it any easier—especially as we think about the many contributions these colleagues have made. 

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.

My focus now is on ensuring that every employee is treated fairly as they depart. While Katarina will provide more detail on all of the specifics around the ways we are committed to supporting these talented bandmates, the following will apply to all impacted employees:

  • Severance pay: We will start with a baseline for all employees with the average employee receiving approximately 5 months of severance. This will be calculated based on local notice period requirements and employee tenure.
  • PTO: All accrued and unused vacation will be paid out to any departing employee.
  • Healthcare: We will continue to cover healthcare for employees during their severance period. 
  • Immigration support: For employees whose immigration status is connected with their employment, HRBPs are working with each impacted individual in concert with our mobility team. 
  • Career Support:  All employees will be eligible for outplacement services for 2 months.

What’s Next

In almost all respects, we accomplished what we set out to do in 2022 and our overall business continues to perform nicely. But 2023 marks a new chapter. It’s my belief that because of these tough decisions, we will be better positioned for the future. We have ambitious goals and nothing has changed in our commitment to achieving them.

We’ve come a long way in our efforts to build a comprehensive platform for creators of all levels, but there’s still much to be done. To truly become the go-to destination for creators, we need to keep improving our tools and technology, explore new ways to help creators engage with their audiences, grow their careers, and monetize their work. 

In fact, looking at our roadmap, with the changes we are making and what we have planned to share at our upcoming Stream On event, I’m confident that 2023 will be a year where consumers and creators will see a steady stream of innovations unlike anything we have introduced in the last several years. I will share more about these exciting developments in the coming weeks. 

Finally, I hope you will join me tomorrow for Unplugged. 

And again, for those of you who are leaving, I thank you for everything you’ve done for Spotify and wish you every future success. 

– Daniel

Tour Spotify’s New Office Space in Milan, Casa Spotify

October 13, 2022

Spotify Casa Milan stage

Spotify is home to the world’s greatest creators—from musical artists to podcasters to, most recently, authors and editors. Our offices worldwide are a reflection of the talent and creativity found on our platform. Our latest office in Milan, Italy, which serves as our hub for the 28 countries in Southern and Eastern Europe, is no exception. 

Dubbed Casa Spotify, our Milan office is located in the city’s bustling financial district. The modern new space helps us demonstrate our commitment to the creative community in the region. It will accommodate more than 100 employees representing more than 10 nationalities, and its doors are also open to employees who work from anywhere who come through the city. 

The office, a villa encompassing six floors, was imagined and precisely designed to reflect the diversity of the teams and to host various functions and operations. 

Get to know the space.

Head to reception and you’ll find a colorful geometric ceiling beckoning you inside to a minimalist seating area with plush, comfortable chairs.

Casa Spotify Milan reception

A vital part of any office space is the work areas. Whether employees are plugging away at their desks or holding a hybrid meeting in a conference room, they have plenty of distinct spaces to work from throughout the day, on any given floor. 

“Our office is a real home to all,” says Federica Tremolada, Managing Director, Southern and Eastern Europe. “The rooms themselves represent the different cultural facets of the region. The meeting rooms, for example, are named after our region’s playlists such as Plus Ultra or Estate Italiana,’ or our podcasts such as the hugely popular XRey, the first original podcast we launched in Spain, which reveals the story of the former King Juan Carlos.”

 

Distributed First Contributes to Spotify’s Strength

September 1, 2022

animation of people working across many workplaces

Enter a meeting room in any Spotify office and you’ll see a reminder on the screen, a mantra to keep in mind as you turn on the monitor to start your meeting: “We are distributed first,” it reads. “Does everyone in the room and on-screen have an opportunity to speak?” 

As a company, Spotify has long appreciated and embraced the intricacies of hybrid meetings. Global and local teams as well as collaborators worldwide meant that combined in-person and virtual meetings were already a big part of the company culture. Still, the majority of our 6,000+ employees were heading into work daily at one of our offices prior to the start of the pandemic. 

Yet Spotify’s leadership team recognized early that in-office work wasn’t the only way to achieve company goals. Particularly, the goals of globalization and digitalization necessitated an even more flexible way of working. So becoming “distributed-first,” or enabling employees to work from the places that were the most conducive to them, was a logical next step. The events of 2020, in addition to employee feedback, served to accelerate this transition. 

Fast-forward two years, in which we’ve incorporated a Work from Anywhere (WFA) policy and converted our offices to become dynamic workplaces. Now, employees are again holding hybrid meetings, with some in offices and others at home across the world. However, much has changed, and more employees now work fully remote, while those who choose to go into the office one, two, or five days a week find themselves in an entirely new set-up. 

All of this ladders up to our distributed-first mentality—one in which Spotify provides a productive work space for everyone, even when no two employees’ work places, preferences, or optimal schedules are the same.

Meet the dynamic workplace

Start with a hub—a location like Spotify’s New York office (where you’ll be treated to sweeping views of the harbor and comfortable seating for meetings and relaxing alike). Around the corner, desks are dotted across open collaborative areas that are great for in-promptu conversations; the space’s quieter padded conference alcoves are ideal for when employees need to focus. Conference rooms with smart monitors for hybrid meetings can be booked for groups of two, four, 10, and more. Employees can flex as their day and work needs require. 

 

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The concept of providing an office space that reflects the needs of employees, or a “dynamic workplace,” was under consideration even pre-pandemic. According to Mattias Stålhammar, head of Global Workplace Services, Spotify started office transformations in autumn of 2019. “We consider the dynamic workplace to be an approach and not a solution,” he explained. “The goal is to provide a workplace that reflects the needs of the employees and thus the business. The three main objectives are flexibility, well-being and sustainability.”

Some view collaboration as their primary motivation for spending time in the office; for others, it’s the focus time. Our offices are being designed accordingly. Unassigned desks allow employees the flexibility to change up their office environment depending on their work needs or even their moods. 

“Some of the coolest things I’ve worked on here have grown out of small talk in the hallways and around our desks,” says J.J. Italiano, Head of Global Hits, who works out of Spotify’s Los Angeles office. “With the layout of the LA office, it’s so easy to run into people that I might not interact with in my normal day-to-day work. Moving from one conference room to another or getting up to grab a snack can turn into a 30-second conversation with a colleague that helps to inspire something I’m working on or get me up to speed on something interesting happening elsewhere in the company that I wasn’t aware of before.” 

 

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But for J.J., a best-of-both-worlds approach allows him to do his best work. “Some work is easier to do alone at home, like catching up on emails or working on a project,” adds J.J. “Other stuff—like planning, brainstorming, and problem-solving—are easier to do in person with the team, where ideas can be bounced around and refined in a group setting.” 

In any location, proper equipment is critical. “We provide three different types of workplace nodes,” continues Mattias. “Our Spotify offices, coworking spaces, and home offices. In our office and home office nodes, we make sure that we provide an ergonomic set-up together with a proper IT set-up.” So employees who work primarily from home and those who are hybrid can order ergonomic equipment to ensure a comfortable environment. 

At the end of the day, J.J. chose to primarily work from the office—something we call “Office Mix”—because his teammates are his favorite thing about working at Spotify. And that’s a sentiment that’s shared across the business. 

“Our people are our most important asset and it’s crucial that we provide the best possible conditions for them to be productive, stay healthy, and feel connected to the company—and, let’s not forget—to have fun!” says Mattias. “Our workplace plays an important role in attracting and retaining top-talent to make sure the company continues to develop in a positive way.”

 

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A Work-From-Anywhere mentality

Our “Work from Anywhere” (WFA) policy, which was rolled out in early 2021, cements that the office isn’t the be-all and end-all for work at Spotify. “We believe that work isn’t something you come to the office for, it’s something you do” is a philosophy long held by Katarina Berg, Spotify’s Chief HR Officer. “Giving people freedom to choose where they work will make great people more effective, and this flexibility will better support work-family balance, ultimately helping to attract and retain talent.”  

 

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This mindset has already paid off for plenty of employees. Maria Rossi, a Product Insights Manager for Personalization who relocated from Argentina to the Netherlands six years ago, says she was only looking for jobs where she could work mostly remotely from Amsterdam. She enjoys the flexibility of working from home, which allows her to harness deep focus time during the workday as well as daily runs right before sunset. She doesn’t miss opportunities for in-person connections, either.

“Working from Amsterdam while my direct team is distributed across Europe means that going to the office brings the best of both worlds,” she says. “I get the flexibility to live in a city I love with friends and family that are here, while having a global team and collaborating with colleagues across the world. Being able to have a distributed-first mentality also enables us to have, in my opinion, the biggest benefit of all: creating a team with different backgrounds, cultures, and experiences by acknowledging that you cannot always find that in one place.” 

Marina Cupaiuolo, an Operations Manager, was hired in Stockholm but relocated during the pandemic to Östersund, a five-hour train ride north of the city. The benefits of remote work and the culture surrounding it have enabled her to enjoy her new home and stay connected to colleagues. 

“Without WFA, I wouldn’t have been able to live this close to relatives, or afford the kind of living situation I can now—with a house and a big garden and a lake view. I’m able to go outside during lunch and pick veggies from my garden. I get to immediately play with my daughter as soon as I’m done with work. I value the trust that I’m delivering on the work that I was hired for, no matter if I’m sitting at an office desk or not.” 

 

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That trust is core not only to her day-to-day life working from home, but the Spotify mentality that contributes to a positive—and productive—distributed-first environment.

“We believe we can make people and teams more effective by building on the lessons we’ve learned on how Spotify works and rethinking how that work is done,” noted Katarina. “Operating as a distributed organization will produce better and more efficient ways of working through more intentional use of communication and collaboration practices, processes, and tools.” 

“I know this is a journey and that there are still things we have to figure out, but what I have found amazing is that there’s really been a mindset shift towards working distributed first,” says Maria. “People are very open and everyone is doing their best to make this work out. I’m confident it can only get better.” 

Kodcentrum and Spotify Make Coding Cool for Kids in Sweden

November 30, 2018

Spotify wants kids to know that code isn’t just computer language—it’s everywhere, even in their favorite music, apps, and games. In fact, anyone can learn code, and there’s no age requirement for speaking the language of the future. That’s also the aim of Kodcentrum, a program that runs coding workshops for children in Sweden. Four years ago, we became the first main sponsor of Kodcentrum, and ever since, we’ve worked together to help alter the landscape of programming in Europe. Together through our weekly Code Clubs at Spotify Stockholm (and larger initiatives like last year’s Hackathon, where 400 fifth graders coded at Stockholm’s City Hall), we hope to inspire and shape the next generation of brilliant thinkers, inventors, and creators.

Kodcentrum was founded in 2014 when social entrepreneur Johan Wendt read an EU Commission report that stated Europe would face an absence of 1 million programmers in 2020. “By introducing children to programming early on, we want to empower them to take part of and influence the digital democracy. We also hope that we can contribute to the improvement of their position in the workforce, and by doing so, promote equality in tech,” Lisa Söderlund, education manager at Kodcentrum,” Lisa Söderlund, education manager at Kodcentrum says. Now, through the program’s clubs and hack events, aspiring young developers receive hands-on instruction from professionals who teach coding in real and relatable ways.

Each semester, Kodcentrum and Spotify’s Code Club initiative hosts up to 25 students from grades 4-6. Over the course of nine weeks, kids explore digital creation and problem solving through visual coding in the children’s programming language Scratch. During each 90-minute session, young coders work with Spotify volunteers to create computer games—including “The Flying Whale” and “Bug Race”—that make coding fun and satisfying.

“The best thing about the Code Club is that many of the children still haven’t been made aware of stereotypes that dictate who can or can’t become a good programmer,” says volunteer Andreas Johansson, Associate Data Scientist at Spotify. “We have a 50/50 gender ratio and can reach out to kids with completely different backgrounds. Helping the tech business become more equal in the future feels incredibly good and important to me.”

While Code Club is rewarding for Spotifiers, it’s even better for the kids who participate.

“It is fun. At the Code Club you get a lot of help, which you don’t get when you code at home,” says Vincent.

Milo loves making games: “That’s the most fun thing with coding.”

Sisters Valetta and Angelina agree that “the best thing is to make games and see what it’s like to work with coding.”

Kodcentrum also works with schools and teachers to introduce coding in school education. “When we teach kids coding, we are improving their chances on the labor market and ensuring that companies like ours can be successful in the future,” says Katarina Berg, Chief Human Resources Officer at Spotify. Inspiring and enabling all children, regardless of their gender or background, to see coding as a career path that’s open to them has been a major goal of the initiative. “Every child should have the same opportunity to learn how to code. It’s a matter of democracy, really,” Berg continues.

For the kids involved in Code Club, working with real, professional coding volunteers has made the possibility of a career in developing a more tangible reality. Each week, the kids show up ready, willing, and eager to learn.

“The program gives kids the chance to ask questions and gain a deeper understanding,” Söderlund says. “This contributes to a better understanding of who a coder is. It could be you, or me, or anyone else.”

“We want them to understand that they can be a part of it if they want to. They can be the ones programming a Spotify app in the future.”

Supporting the ‘Heart & Soul’ of Spotify

October 15, 2018

October marks Mental Health Awareness Month. At Spotify, we know it’s important not only to recognize this day, but to commit to the emotional health of our employees throughout the year. Mental health issues or addiction affect most of us at some point in life, either directly or through someone we love—sometimes even through the music and personal stories of our favorite artists.

Our goal at Spotify is to foster a culture of awareness, acceptance, sensitivity, and support around issues such as depression, anxiety, and addiction—a culture where we can all embrace our identities, look after ourselves and each other, thrive, and be our best.

Earlier this year, we launched Heart & Soul, a mental health initiative, to provide the best possible support for our employees and to promote deep knowledge about emotional well-being among all at Spotify.

It’s important to focus on mental health in all aspects of our lives—and even more so in the workplace. We spend 35 percent of our waking hours at work. That means the environment we work in matters to our emotional well-being. And if we’re dealing with mental health issues in our everyday lives, they follow us to the office.

While we can’t diagnose mental illness or recommend specific treatment options, a company like ours can take the initiative in building knowledge and reducing stigmas, creating a culture of acceptance, and encouraging better understanding of conditions, symptoms, and warning signs. We can also make sure our employees are trained in tools that support self-care.

Our Heart & Soul support network starts with our employees. We provide a wide range of training on subjects like inclusion, unconscious bias, and warning signs for substance abuse and how to support someone who suffers from it. We not only want to erase the stigma surrounding mental health, but wish to enable people to recognize when someone is in need and how to offer tools and treatment—whether that’s through the self-care activities that we offer or by seeking professional help.

Leading the way are our Heart & Soul ambassadors, employees from all over the organization who work to engage others and help all employees feel included in our wellness vision. Ambassadors promote emotional fitness, drive awareness, and build community while providing us with a ground-level perspective that will help our initiative grow and improve. They also lead the way in assembling our self-care database, a resource our employees can access whenever they need it.

Every day we pave our way in music, culture, and technology—and we want to do the same for the health of our employees. That means fostering a holistic environment that erases stigma and promotes understanding so we can each bring our whole selves to work. Wellness is key for all of us to thrive in the long term, and it is our duty to help everyone feel supported.