Biggest media industry layoffs worldwide 2020-2024
In July 2024, it was announced that Redbox would lay off 1,000 employees, the second-highest number of terminations in the media industry so far. The largest layoff announcement so far was that of Spotify, when the streaming giant declared in December 2023 that it would let 1,500 employees go, making this the biggest media industry layoff case since 2020. SiriusXM’s layoff of 475 people in March 2023 ranked fourth on that list.
Spotify’s layoffs in the grand scheme of things
While Spotify’s employment changes were notable in the media world, put in perspective, the numbers seem modest. For example, compared to the layoffs in the tech industry, where Amazon announced in 2022 and 2023 the termination of 18,000 employees, Spotify’s 1,500 may seem a less drastic move. However, as it is, Spotify’s number of employees already decreased by 15 percent between 2021 and 2022, so the addition of over a dozen hundred dismissals indicates larger reorganization in the company. It is a significant move on the side of the streaming giant which for years boasted growing revenues as well as an expanding workforce.
Layoffs in the media - the bigger picture
Other media companies did not escape the trend of layoffs that started plaguing the United States in 2022. However, over the decades the sector has experienced a few dark periods in terms of employment losses. When the economy suffers, a popular cost-cutting solution is workforce restructuring, as payroll is always one of the biggest overheads for businesses to grapple with. The spikes in media industry job losses are commonly tied to recessions (e.g. in 2001 and 2008). In 2020, the culprit was the coronavirus pandemic. The most recent layoffs, though not as radical as the previous ones, are a result of numerous mergers and acquisitions, combined with economic factors, and a general shift to digital platforms.
