Spotify, a major music streaming platform, made various changes and conducted layoffs in the past year to reduce the company’s operational costs. Spotify laid off around seventeen percent of its workforce in the past months. These adjustments have allowed Spotify to earn record-high profits in the first quarter of 2024, and the company significantly improved its profit margins. The first quarter earnings were higher than projected, and the company’s shares increased by over ten percent. However, Spotify did not add as many new users as projected, and the first quarter resulted in 3 million fewer new users than expected. Spotify states that this is likely due to slower market growth and moderate economic conditions, and the company is looking to add 16 million new users in the second quarter of 2024. Spotify is also seeking to further increase gross profit margins in the next quarter.
See "Spotify earned record-high profits in first quarter, following a year of major job cuts", Rohan Goswami, CNBC, April 24, 2024