Daniel Ek, founder of Spotify $SPOT-0.5%, announced that due to slower economic growth and a more difficult market, Spotify will lay off 17% of its workforce, roughly 1,500 people.
Capital Structure
Market Cap
61.6B
Enterpr. Val.
55.4B
Valuation
P/E
-500.9
P/S
4.0
In an open letter to employees, Daniel Ek described the situation Spotify has found itself in and why it is making this significant reduction. In short: the capital available is no longer as cheap as in previous years, when the company recruited a lot of new reinforcements, and now its costs are prohibitive. I wonder what effect this will have on the stock. It's going to be quite a bit of cost cutting.
I use Spotify daily, but I'm unsure about the stocks.
Interesting news, I'm not invested, but I keep an eye on the stock as Spotify is great for me to use for music and I listen to the occasional podcast there.
As you write, I'm curious how this will affect the stock price.