Spotify Implements Job Cuts to Streamline Management Structure
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
0mins
Should l Buy SPOT?
Source: seekingalpha
- Job Cut Scale: Spotify has laid off approximately 3% of its staff in the podcast division, affecting The Ringer and Spotify Studios, following a 5% reduction last June, indicating the company's ongoing efforts to optimize team structure.
- Reason for Cuts: Although the company has not publicly commented on the layoffs, internal sources indicate that these cuts are not aimed at cost reduction but rather to facilitate faster coordination and alignment across teams, enhancing management efficiency.
- Affected Programs: The layoffs impact several programs, including "New York, New York With John Jastremski," which was part of Spotify's $250 million acquisition of The Ringer from ESPN in 2020, reflecting strategic adjustments in the company's podcast content.
- Future Investment Focus: Despite the layoffs, Spotify continues to invest in growth areas within its podcast business, demonstrating the company's commitment to driving business development through streamlined management structures in a competitive market environment.
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Analyst Views on SPOT
Wall Street analysts forecast SPOT stock price to rise
21 Analyst Rating
15 Buy
6 Hold
0 Sell
Moderate Buy
Current: 472.480
Low
525.00
Averages
750.79
High
900.00
Current: 472.480
Low
525.00
Averages
750.79
High
900.00
About SPOT
Spotify Technology SA a Luxembourg-based company, which offers digital music-streaming services. The Company enables users to discover new releases, which includes the latest singles and albums; playlists, which includes ready-made playlists put together by music fans and experts, and over millions of songs so that users can play their favorites, discover new tracks and build a personalized collection. Its users can either select Spotify Free, which includes only shuffle play or Spotify Premium, which encompasses a range of features, such as shuffle play, advertisement free, unlimited skips, listen offline, play any track and audio. The Company operates through a number of subsidiaries, including Spotify LTD and is present in over 20 countries. Its service offers a music listening experience without commercial breaks.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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