Spotify Lays Off 17% of Staff Despite Strong Financials, Seeking to Cut Costs and Regain Investors' Favor
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Spotify recently laid off 17% of its staff despite positive financials like operating income and free cash flow.
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Spotify is a massive company, with Q3 revenue of €3.36 billion (€13.4 billion annualized).
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However, Spotify's stock has declined - investors are not valuing it as highly as before relative to revenue.
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Spotify likely laid people off to cut costs and boost margins, hoping to regain investors' favor.
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The article shows a chart of Spotify's declining price-to-sales ratio over time as evidence of lost investor confidence.