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.
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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.
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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.
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'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.
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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.
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Four months later, the company cut 200 more jobs, mostly from Spotify's podcast division.
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Despite rising numbers of monthly active users, Spotify has struggled to remain profitable, reporting a $500 million net loss so far in 2023.
