Spotify heads to Four World Trade Center adding 1,000 new jobs
Spotify have committed themselves to creating a giant new office in New York at the Four World Trade Center to create over 1,000 jobs.
Spotify are planning to take over a giant 378,000 square feet space in the massive Four World Trade Center in New York. The massive music streaming company will double the size of their current office in New York, taking space on floors 62-72 on the skyscraper.
New York State’s governor Andrew Cuomo announced the news on Facebook Live earlier this week. Spotify haven’t revealed what will happen to their current space in Manhattan’s Flatiron District HQ where they have around 600 employees, but they may retain both if they plan on adding over 1,000 employees as they say.
Andrew Cuomo said on Twitter: “Spotify is going to be adding over 1K employees here in the great State of New York, and moving into Four World Trade Center.” Whilst Spotify’s General Counsel Horacio Gutierrez added: “I hope Spotify’s expansion sends a clear signal to the tech community that New York is open for business.”
The addition of more than 1000 employees will also be a massive jump for Spotify, who reported 1,610 employees in 2015. Whilst it looks like good business for Spotify it’s not clear yet how, or whether, major labels will react to such a large expansion.
Spotify are currently asking labels to drop their revenue share from 55% to 52% so that they can bolster their profits for Wall Street and eventually launch an IPO, which has been delayed again recently. Recent reports suggest that Spotify may now wait until 2018 to finally offer it’s IPO.
Whilst Spotify are massively successful, as is often the way with startups especially in music, the company still faces large quantities of debt that it’s profits aren’t able to outmatch. However year on year Spotify grows to massive extents and now stands as the world’s most popular streaming service, and with confidence enough to buy a new office Spotify must be confident they are in a good position.