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Spotify CEO Daniel Ek surprised by how much laying off 1,500 employees negatively affected the streaming giant’s operations (fortune.com)

submitted 6 months ago* (last edited 6 months ago) by wanderingmagus@lemm.ee to c/nottheonion@lemmy.world

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cross-posted from: https://lemm.ee/post/30272690

When Spotify announced its largest-ever round of layoffs in December, CEO Daniel Ek hailed a new age of efficiency at the streaming giant. But four months on, it seems he and his executives weren’t prepared for how tough filling in for 1,500 axed workers would be.

The music streamer enjoyed record quarterly profits of €168 million ($179 million) in the first three months of 2024, enjoying double-digit revenue growth to €3.6 billion ($3.8 billion) in the process.

However, the company failed to hit its guidance on profitability and monthly active user growth.

Edit: Thanks to @Zerlyna@lemmy.world for the paywall-free link: https://archive.ph/wdyDS

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[-] kescusay@lemmy.world 78 points 6 months ago

Someday, a large corporation is going to finally figure out that firing the people who make their products work results in shitty products no one buys. And instead of firing those people, they'll fire the bean counters and outside consultants who promised that this quarter's revenue will look great if they stop employing people to make their stuff.

But today is not that day.

[-] NegativeInf@lemmy.world 30 points 6 months ago

Nah. It'll be never. So long as they can spend good money to have Mackenzie tell em firing X employees will raise profit .0Y%, they will do it. Because anything else to improve profits would require actual work and investment. And that doesn't show immediate profitability.

[-] Klairabelle@lemmy.world 10 points 6 months ago

Believe it not hospital boards are like this too. Profits > quality patient care especially when they're made up of the 'good ole boys'

[-] Maeve@kbin.social 5 points 6 months ago

You ought to see what goes on inside the third-party payer corporations.

[-] Klairabelle@lemmy.world 3 points 6 months ago

It's money grubbing all the way out 🥲

[-] Maeve@kbin.social 2 points 6 months ago

You already know

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this post was submitted on 24 Apr 2024

376 points (98.0% liked)

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