MORE The Latest / POSTED BY: KINGSOFAR

Spotify shares surged over 7% on Monday following the announcement that the music streaming giant will be reducing its workforce by 17%. In an email to staff, CEO Daniel Ek explained the move, stating, “We are taking substantial action to rightsize our costs.” Ek acknowledged that Spotify had overexpanded its team during 2020 and 2021 when capital was abundant.

This round of layoffs, approximately 1,500 jobs, reflects Spotify’s effort to adjust to a growth slowdown. Although Spotify reported a profit of 65 million euros ($70.7 million) in the third quarter, Ek highlighted the need for the company to address economic challenges and the rising cost of capital.

Spotify announces a layoff of 17% of its workforce in its effort for profitability following Taylor’s Swift $100 million payout from song streams.

In an internal memo posted on Spotify’s website, Ek expressed the company’s commitment to becoming the world’s leading audio company while ensuring consistent profitability and growth. The layoffs come despite Spotify’s strategic moves, including subscription plan price increases and expansion into podcasts and audiobooks.

This recent workforce reduction follows previous cuts earlier in the year, with Spotify trimming 6% of its workforce in January (around 600 employees) and an additional 2% in June (approximately 200 roles). Despite these adjustments, Spotify’s shares have more than doubled in value throughout the year. Wells Fargo analysts suggest that these layoffs signal Spotify’s focus on achieving profitability targets rather than merely reacting to economic challenges, estimating a potential nearly 2% reduction in operating expenses by 2024.

Twitter
Facebook
Newsletter
Recent Posts
  • Silent Season Offers New Hope for Rock in New Song ‘Hopeless’
  • SOMOH Drops New Song Problem Child
  • Lily Meola hits a high note with ‘Over The Moon
  • Imogen Clark’s ‘Big One’ Takes You Back to the 80s with Infectious Vibes”
  • Christos Drops Infectious Track ‘need me like i needed u’
  • Blondfire pulls you into a lovesick dream world with her new song ‘Foolish’.
  • Alternative rock band Sick Love drops hard-hitting track “Ricochet.”
  • Estella Dawn Soars to New Heights with Her Latest Single ‘Angel’
  • Courtney Farren Strikes Again with Latest Single ‘I’m Not Alone (I’m Lonely)’ – Anticipated Lead Track from Debut LP!”
  • Magenta Wave Drop New track Rock Track “Tightrope”
  • Indie Trio Cigarettes @ Sunset Drops ‘Shoulder Blades’: A Blend of Alternative and Roots Rock”
  • Dempsey Bolton’s Drops ‘Couple Minutes’: A Fusion of Pop and Hip Hop with Shades of Beck and Moby”
  • What’s the Difference between a singing lesson and vocal coaching session?
  • Landon Conrath’s Latest Release ‘Replay’: A Must-Listen for Indie/Pop Fans
  • TOVE Drops Ambient Track ‘Sucker Punch’ – Perfect for Psychedelic Indie Rock/Folk Fans!
  • Discover august’s Latest Track ‘Greyhound’ – Perfect for Folk Rock and Coffeehouse Playlists
  • Discover Cat Rian’s Latest Single ‘Read The Room’ Blends Country Pop with Indie Vibes
  • Listen to Maijah New Song ‘The Star’ – A Feel-Good Anthem for 2024
  • Ariana Jimenez Strikes a Chord with Soulful Single ‘Miss It All,’
  • Illusions by Haley Mae Suiter: A Blend of Classic and Modern Rock with Pop Country Vibes
  • Eleven Point Two Drops New Song ‘Space’ from the Album ‘Escape Velocity
  • Heatracer drops alternative rocker The Feel
  • Matilde G released a catchy new song 7Oceans
  • Check Out Speelburg’s New Track ‘New Earth’ – Perfect for MGMT Fans
  • Tom Avery Drops Moody and Haunting Sad Pop Track ‘Ophelia’
  • Òlah Bliss Drops Electrifying Track ‘Holy’ Perfect for Spotify’s Femme Fatale and New Noise Playlist
  • Boyce Avenue releases their cover of the timeless classic “Bless The Broken Road”
  • Christos Drops Cinematic Pop Song Stranger
  • San Cisco Releases Catchy Indie Pop Anthem ‘Summer Days’ from Upcoming Album
  • The Collection Drops Folkish Gem ‘Spark of Hope’
  • Follow

    Home

         

    About

         

    Contact

         

    Daily Readership

    Copyright 2024 Kings of A&R     Website Design by PaleBird