Spotify CEO Acknowledges Layoffs Disrupted Operations but Affirms Strategic Necessity

Despite initial challenges, Spotify reports recovery and strong financial performance following significant workforce reductions.

Spotify's CEO Daniel Ek admitted that the December layoffs of 1,500 employees disrupted operations more than anticipated, but were essential for strategic alignment.
The company has reported a recovery, citing a solid first quarter with strong revenue growth and the largest operating income in its history.
Following the layoffs, Spotify saw a 19% increase in monthly active users, although it fell short of its target by 3 million.
Ek expressed confidence in continuous improvement and robust growth for Spotify, despite a pullback in marketing spending in 2023.
The streaming service plans to raise prices later this year, marking its first price increase in over a decade.