Why Spotify Stock Jumped as Much as 11.5% Today
Though Spotify (NYSE: SPOT) grew its business significantly in 2023, it's continuing to cut its operating expenses, and investors are cheering its efforts. On Monday morning, CEO Daniel Ek told employees that he was laying off 17% of the workforce in line with his efforts to make Spotify a more efficient business. Shares jumped by as much as 11.5% in early trading and were still up by about 8.1% as of 1 p.m. ET.
This isn't the first time Spotify has cut its payroll. It's the audio giant's third round of layoffs this year alone.
Management also cut original podcast spending, and in the third quarter, sales and marketing spending dropped by 18% while general and administrative costs fell by 19%. But those cuts are being accelerated with this round of layoffs.
Source Fool.com
