“While there is no doubt that this was the right strategic decision, it disrupted our day-to-day operations more than expected,” Ek told investors during an earnings conference call.
But Ek quickly assured investors that the company had successfully overcome this challenge.
“It took us a while to find our feet, but more than four months into this transition, I think we are back on track,” Ek added.
And it looks like Ek’s decision could have paid off for Spotify.
On Tuesday, the streaming giant released its results for the first quarter of 2024, revealing that Spotify made a quarterly profit of 197 million euros, or $210 million. The company had suffered a loss of around $241 million during the same period last year.
Founded in 2006, the music platform has become a go-to place for listeners wanting to enjoy the latest tracks.
On Saturday, Spotify announced that Taylor Swift’s latest album, “The Tortured Poets Department,” had become the platform’s most streamed album in a single day. Swift herself became “the most streamed artist in a single day in Spotify history,” the company said in an Instagram post.
“We talked about 2024 as the year of monetization, and we are delivering on that ambition,” Ek said Tuesday.
“I am pleased with the changes we are implementing and remain very confident in our ability to achieve the ambitious plans we have set out,” he added.
Spotify’s change in fortunes comes after the company laid off 2,300 workers in three rounds of layoffs last year. In addition to cutting 1,500 jobs in December, Spotify laid off approximately 600 employees in January 2023 and another 200 in June.
The layoffs, Ek said in December, were necessary because the company needed to become “relentlessly resourceful.”
“Today we still have too many people dedicated to supporting work and even working around work rather than contributing to opportunities that have real impact,” Ek wrote in a blog post at the time.
Ek isn’t the only tech executive who recognizes the challenges and benefits of job cuts.
In February, Meta CEO Mark Zuckerberg told Morning Brew Daily hosts Neal Freyman and Toby Howell that laying off tens of thousands of employees was “really difficult.”
“It was obviously very difficult, we parted ways with a lot of talented people that we cared about. But in a way, becoming simpler makes the company more efficient,” Zuckerberg said.
Representatives for Spotify did not immediately respond to a request for comment from BI sent outside of normal business hours.
businessinsider
