Spotify Shares Rise 8.1% on Layoffs
December 04 2023 - 10:15AM
Dow Jones News
By Denny Jacob
Spotify shares rose 8.1% to $195.30 following news it would lay
off about 1,500 employees as it works to accelerate its
profitability push.
The stock has more than doubled on the year.
The audio streaming company announced the job cuts to staff on
Monday, its third round of layoffs this year, The Wall Street
Journal reported.
The company expects to take up to about $157 million in charges
during the final quarter of the year as a result of the
layoffs.
Despite efforts to reduce costs, Chief Executive Daniel Ek said
in a letter to staff that Spotify is still spending too much money.
The audio streaming company has been squeezed by slower economic
growth as well as interest-rate increases that have made it more
expensive to borrow, he said.
Write to Denny Jacob at denny.jacob@wsj.com
(END) Dow Jones Newswires
December 04, 2023 11:00 ET (16:00 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.
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