Spotify on Monday morning became the latest tech company to announce a major round of layoffs. The Stockholm-based music streaming service is cutting 6 percent of its global workforce as part of a larger corporate restructuring aimed at improving efficiency.
In a blog post announcing the layoffs, CEO Daniel Ek said the company overestimated its ability to withstand the slowdown in advertising spending that came with an uncertain macroeconomic situation.
"In hindsight, I was too ambitious in investing ahead of our revenue growth," he wrote. "I take full accountability for the moves that got us here today."
Spotify benefited enormously in the early days of the pandemic, when shutdowns pushed users to spend even more time online, encouraging firms to make heavy investments.
Ek noted that operational expenditures were increasing at twice the rate of revenue growth, a situation "that would have been unsustainable long-term in any climate, but with a challenging macro environment, it would be even more difficult to close the gap."
With Spotify's "historic focus on growth," Ek added that many will see the announcement as a shift in culture, but stressed the need to evolve as the business grows.
Along with the layoffs, Spotify is reshuffling its organizational chart. Gustav Söderström is taking over as chief product officer, and Alex Norström will become the chief business officer, essentially helping Ek run the day-to-day operations of the company as co-presidents.
In addition, Chief Content Officer Dawn Ostroff is stepping down.
"While we have made great progress in improving speed in the last few years, we haven’t focused as much on improving efficiency," wrote Ek in a blog post. "We still spend far too much time syncing on slightly different strategies, which slows us down."
A big-screen adaptation of the anime “Chainsaw Man” has topped the North American box office, beating a Springsteen biopic and “Black Phone 2.” The movie earned $17.25 million in the U.S. and Canada this weekend. “Black Phone 2” fell to second place with $13 million. Two new releases, the rom-com “Regretting You” and “Springsteen — Deliver Me From Nowhere,” earned $12.85 million and $9.1 million, respectively. “Chainsaw Man – The Movie: Reze Arc” is based on the manga series about a demon hunter. It's another win for Sony-owned Crunchyroll, which also released a “Demon Slayer” film last month that debuted to a record $70 million.
The Federal Aviation Administration says flights departing for Los Angeles International Airport were halted briefly due to a staffing shortage at a Southern California air traffic facility. The FAA issued a temporary ground stop at one of the world’s busiest airports on Sunday morning soon after U.S. Transportation Secretary Sean Duffy predicted that travelers would see more flights delayed as the nation’s air traffic controllers work without pay during the federal government shutdown. The hold on planes taking off for LAX lasted an hour and 45 minutes and didn't appear to cause continued problems. The FAA said staffing shortages also delayed planes headed to Washington, Chicago and Newark, New Jersey on Sunday.
Boeing workers at three Midwest plants where military aircraft and weapons are developed have voted to reject the company’s latest contract offer and to continue a strike that started almost three months ago. The strike by about 3,200 machinists at the plants in the Missouri cities of St. Louis and St. Charles, and in Mascoutah, Illinois, is smaller in scale than a walkout last year by 33,000 Boeing workers who assemble commercial jetliners. The president of the International Association of Machinists says Sunday's outcome shows Boeing hasn't adequately addressed wages and retirement benefits. Boeing says Sunday's vote was close with 51% of union members opposing the revised offer.
The stunning indictment that led to the arrest of more than 30 people — including Miami Heat guard Terry Rozier and other NBA figures — has drawn new scrutiny of the booming business of sports betting in the U.S. The multibillion-dollar industry has made it easy for sports fans — and even some players — to wager on everything from the outcome of games to that of a single play with just a few taps of a cellphone. But regulating the rapidly-growing industry has proven to be a challenge. Professional sports leagues’ own role in promoting gambling has also raised eyebrows.
Tesla, the car company run by Elon Musk, reported Wednesday that it sold more vehicles in the past three months after boycotts hit hard earlier this year, but profits still fell sharply. Third-quarter earnings fell to $1.4 billion, from $2.2 billion a year earlier. Excluding charges, per share profit of 50 cents came in below analysts' estimate. Tesla shares fell 3.5% in after-hours trading. Musk said the company's robotaxi service, which is available in Austin, Texas, and San Francisco, will roll out to as many as 10 other metro areas by the end of the year.
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