Spotify Shares Climb 8% Over Restructuring, Layoff News

By Sabela Ojea

Shares of Spotify Technology climbed after the company said it is laying off about 1,500 more employees as part of its third round of job cuts this year.

At 2:55 p.m. ET, shares were up 8.1%, at $195.29, which would be its highest close since Feb. 1, 2022. The stock has surged 148% since the year started, on pace for Spotify's best year on record.

The streaming giant's Chief Executive Daniel Ek announced the restructuring plan to staff Monday as the Stockholm-based company looks to accelerate its profitability push.

Despite efforts to reduce costs, Spotify is still spending too much money, Ek said.

The restructuring represents Spotify's third round of significant layoffs this year. In January the company said it would lay off about 600 employees, or 6% of staff. In June it announced plans to trim an additional 200 jobs, or 2% of its workforce.

Write to Sabela Ojea at sabela.ojea@wsj.com

(END) Dow Jones Newswires

December 04, 2023 15:20 ET (20:20 GMT)

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