Spotify Shares Climb 8% Over Restructuring, Layoff News
December 04 2023 - 3:35PM
Dow Jones 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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