Shares of Spotify Technology surged after the company revealed its plans to lay off approximately 1,500 more employees as part of its third round of job cuts this year. The streaming giant's CEO, Daniel Ek, made the announcement on Monday, signaling the company's commitment to accelerate its profitability push.
Despite previous efforts to reduce costs, Spotify acknowledges that it is still spending excessively. As a result, the company has decided to embark on a restructuring plan to streamline operations and drive profitability.
As of 2:55 p.m. ET, Spotify's shares were up 8.1%, reaching $195.29. If they maintain this momentum, it will be the highest closing price since February 1, 2022. In fact, the stock has already experienced a remarkable surge of 148% since the year began, positioning Spotify for its best year on record.
This restructuring marks Spotify's third significant round of layoffs in 2022. In January, the company announced a 6% reduction in its workforce, affecting approximately 600 employees. Then in June, Spotify revealed plans to trim an additional 200 jobs, accounting for about 2% of its overall workforce.
Despite these changes, Spotify remains committed to delivering an exceptional music streaming experience for its users while striving for long-term financial success.