The premium subscribers on Spotify have increased to 205 million, as of December 31, 2022. In its earnings release, the company announced that it has seen a 14 per cent increase in paid subscribers year-on-year, which helped it to increase its monthly active subscribers to 489 million, a 20 per cent rise.
Just a few days ago, Spotify announced letting go of 6% of its workforce, adding to the ongoing layoffs in the tech sector. The move was expected to impact nearly 600 employees. As per recent reports, the company’s latest earnings release suggests its financial situation hasn’t significantly worsened in recent months. However, the company posted an operating loss of around $250 million in this quarter.
With this job cut, the Stockholm-based company joined several other multinational tech giants like Alphabet, Microsoft, Meta, and Twitter who have trimmed their workforce amid a shaky economic outlook. Apart from this, Reuters reported that Spotify’s operating expenses doubled its revenue in 2022.
This is because of the company’s aggressive investment in its podcast business, which attracted more advertisers to the platform due to higher user engagement. Companies, on the other hand, pulled back on ad expenses due to the grim economic outlook.