STOCKHOLM/LOS ANGELES—Spotify Technology SA told investors Tuesday it would tighten spending and work to become efficient after a year of investments in technology and content.
Chief Executive Daniel Ek said the “macro environment” changed dramatically over the course of last year, setting the stage for belt-tightening.
“In hindsight, I probably got a little carried away and over-invested relative to the uncertainty we saw shaping up in the market,” Ek said during the company’s fourth quarter investor call.
Spotify invested heavily in building up its podcast and audiobooks business in 2022, with operating expenses growing at twice the speed of its revenue. That set the stage for Spotify to lay off 600 employees this month and trim other costs….