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Spotify to Cut 200 Jobs
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Spotify to Cut 200 Jobs

Spotify (NYSE:SPOT) has declared it will be reducing its global workforce by approximately 200 employees, a 2% cut, as part of a strategy adjustment regarding its collaborations with renowned podcasters worldwide. With an employee base of 8,359 as of 2020, half of whom are based in the US, this announcement, made by Vice President Sahar Elhabashi, will impact the company’s structure.

Elhabashi assures that those affected will receive ample severance packages. The decision to downsize, she explains, springs from a desire to pivot away from a “uniform proposition,” which she believes will ultimately better serve the creator community. This move comes after three years of significant investments by Spotify into its podcast division, amounting to a whopping 493 million euros ($526 million) spent on four podcast-related acquisitions since 2020.

Turning to Wall Street, analysts have a Moderate Buy consensus rating on SPOT stock based on 16 Buys, seven Holds, and zero Sells assigned in the past three months, as indicated by the graphic above.

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