Spotify layoffs: Company's CEO admits job cuts disrupted ‘day-to-day operations’ - Hindustan Times
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Spotify layoffs: Company's CEO admits job cuts disrupted ‘day-to-day operations’

Apr 24, 2024 02:45 PM IST

Spotify layoffs: Daniel Ek said that the company took four months to settle in with the new change and is back on track now.

Spotify layoffs: Daniel Ek, the CEO of Spotify, said that laying off 1500 employees back in December, which is around 17% of employees, as part of an aggressive efficiency drive as the company strived for better profits, posed a challenge for the company. According to Daniel Ek, it was a move very important for the company to manage its resources.

Spotify layoffs: The Spotify logo is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, US.(Reuters)
Spotify layoffs: The Spotify logo is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, US.(Reuters)

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Although the company was able to manage its operations well after some time, it did take a hit after the layoffs. The company took four months to settle in with the new change and is back on track now.

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Daniel Ek also told the investors that the situation is under full control now. Daniel Ek told investors, “Although there's no question that it was the right strategic decision, it did disrupt our day-to-day operations more than we anticipated. It took us some time to find our footing, but more than four months into this transition, I think we're back on track and I expect to continue improving on our execution throughout the year getting us to an even better place than we've ever been.”

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How is the company doing now?

In contrast to its loss of around $241 million last year during this time, the streaming giant has it made a profit of $210 million this year in its first quarter.

"We've talked about 2024 as the year of monetization, and we're delivering on that ambition. I feel good about the changes we are implementing and remain very confident in our ability to reach the ambitious plans we've outlined," Daniel Ek said.

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The company posted on Instagram, “Spotify announced that Taylor Swift's latest album, "The Tortured Poets Department," had become the platform's most-streamed album in a single day. Swift herself became the "most-streamed artist in a single day in Spotify history.”

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