India  
 
NewsR.in

Spotify Execs Cash In After Announcing Pre-Holiday Layoff

Video Credit: Wibbitz Top Stories - Duration: 01:30s - Published
Spotify Execs Cash In After Announcing Pre-Holiday Layoff

Spotify Execs Cash In After Announcing Pre-Holiday Layoff

Spotify Execs Cash In , After Announcing , Pre-Holiday Layoff.

'The Guardian' reports that one of Spotify's top executives sold over $9 million in shares following a surge in value from the announcement of a massive layoff to cut costs.

According to filings with the U.S. Securities and Exchange Commission, Spotify's chief financial officer, Paul Vogel, was just one of several senior executives to cash in.

.

According to filings with the U.S. Securities and Exchange Commission, Spotify's chief financial officer, Paul Vogel, was just one of several senior executives to cash in.

.

The company layoff will reportedly reduce Spotify's workforce by almost a fifth in order to maintain profitability as economic growth slows.

The same day that Spotify announced the layoff, the company's share price rose by as much as 8% and has continued to climb.

On December 1, prior to Spotify announcing the layoff of about 1,500 staff members, the company was trading at $180 per share.

Three days later, after the announcement, shares surged to $194 and were up to $199 on December 5.

.

'The Guardian' points out that while it is legal to sell stock amid a layoff, cashing in when many staff members face losing their jobs before the holidays is ethically questionable.

.

I recognize this will impact a number of individuals who have made valuable contributions.

To be blunt, many smart, talented and hard-working people will be departing us, Daniel Ek, Spotify’s founder and chief executive, via 'The Guardian'.

I recognize this will impact a number of individuals who have made valuable contributions.

To be blunt, many smart, talented and hard-working people will be departing us, Daniel Ek, Spotify’s founder and chief executive, via 'The Guardian'.

In January, Spotify laid off 6% of its staff, reducing its global workforce to 9,200.

.

Four months later, the company cut 200 more jobs, mostly from Spotify's podcast division.

.

Despite rising numbers of monthly active users, Spotify has struggled to remain profitable, reporting a $500 million net loss so far in 2023.


You Might Like


💡 newsR Knowledge: Other News Mentions

Daniel Ek Daniel Ek Swedish entrepreneur, co-founder of Spotify (born 1983)

Spotify Says Upcoming Price Increases Are Needed to Bring Users 'The Best Experience' [Video]

Spotify Says Upcoming Price Increases Are Needed to Bring Users 'The Best Experience'

Spotify Says Upcoming Price Increases , Are Needed to Bring Users , 'The Best Experience'. NBC reports that Spotify will soon be bumping up the price of subscription plans in the United States. . According to a statement on the company's website, increases are necessary for the audio streaming service to, "invest in and innovate on our product features and bring users the best experience.". The changes include the Premium plan increasing from $10.99 to $11.99. The duo plan, which is meant for two users in the same household, will increase from $14.99 to $16.99. The family plan, meant for up to six users who share a household, will increase from $16.99 to $19.99. The price of the service's limited-service ad-supported tier and the $5.99 plan for students will remain the same. NBC reports that this is only the second time that Spotify has increased its prices in the U.S. CEO Daniel Ek recently pointed out that the company has been consistently profitable, despite narrowly missing the most recent monthly active user growth targets. CEO Daniel Ek recently pointed out that the company has been consistently profitable, despite narrowly missing the most recent monthly active user growth targets. In April, Bloomberg News first reported that Spotify might be increasing prices to cover the cost of audiobooks, which includes royalty payments that comprise a majority of its budget. In April, Bloomberg News first reported that Spotify might be increasing prices to cover the cost of audiobooks, which includes royalty payments that comprise a majority of its budget. Spotify's price increases come as some other companies in the U.S. have been announcing price cuts amid signs consumer spending may be waning

Credit: Wibbitz Top Stories    Duration: 01:30Published

U.S. Securities and Exchange Commission U.S. Securities and Exchange Commission Government agency overseeing stock changes

Supreme Court Rules Against SEC's Authority to Impose Fines [Video]

Supreme Court Rules Against SEC's Authority to Impose Fines

Supreme Court Rules , Against SEC's Authority, to Impose Fines. NPR reports that the United States Supreme Court recently voted 6-3 against the Securities and Exchange Commission's policy on fraudulent conduct. . NPR reports that the United States Supreme Court recently voted 6-3 against the Securities and Exchange Commission's policy on fraudulent conduct. . Chief Justice John Roberts, writing for the court's conservative majority, said the current rules deprive accused transgressors of their constitutional right to a jury trial. . Chief Justice John Roberts, writing for the court's conservative majority, said the current rules deprive accused transgressors of their constitutional right to a jury trial. . The SEC relies on administrative law judges (ALJ) to make legal conclusions in cases brought before the agency. The Supreme Court's decision has the potential to send ripples through dozens of agencies, from labor rights to energy regulation. The Court did exclude from its decision those agencies dealing with federal benefits, while some conservative justices wanted the ruling to go further. The three liberal justices in dissent blasted the decision by the majority. . The case was brought by a former conservative radio host and hedge fund manager, George Jarkesy, following an SEC fraud investigation. The case was brought by a former conservative radio host and hedge fund manager, George Jarkesy, following an SEC fraud investigation. An in-house evidentiary hearing fined Jarkesy $300,000, ordered him to pay back almost $700,000 in ill-gotten profits and barred him from the securities industry. Jarkesy argued that he was entitled to a jury trial held in a federal court and that Congress lacked the power to delegate such authority to the SEC. NPR reports that Jarkesy's case was supported by a number of conservative and business groups, and individuals such as Elon Musk. NPR reports that Jarkesy's case was supported by a number of conservative and business groups, and individuals such as Elon Musk

Credit: Wibbitz Top Stories    Duration: 01:31Published