Topline
Just days after layoff announcements from Google parent Alphabet and online retailer Wayfair boosted the firms’ stock values, Spotify shares rallied Monday as the streaming service cut hundreds of jobs to help rein in costs—a phenomenon analysts believe will continue throughout the year, boosting market values but possibly pushing millions of people into unemployment ahead of a potential recession.
Key Facts
Spotify stock surged 5% Monday after CEO Daniel Ek said the firm would cut 6% of jobs, representing some 600 workers, to control costs “in a challenging economic environment,” lamenting he was “too ambitious” in driving up costs after strong growth during the pandemic.
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