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Spotify CEO: I Got ‘a Little Carried Away’ Investing This Year

Daniel Ek said the company will aim to curb spending across the board in 2023, with a renewed focus on “driving efficiency.”

Daniel Ek, Spotify’s chief executive, on Tuesday admitted he may have gotten a tiny bit spend-happy this year. Speaking on a fourth quarter earnings call to investors, Ek said that the company may have erred by heavily investing in areas like podcasts. “In hindsight, I got a little carried away and over-invested relative to the uncertainty I saw in the market,” he said, according to Deadline. Ek promised that Spotify will curb spending across the board in 2023, focusing on “driving efficiency” and “not just growth at any cost.” He noted that restructuring and the recent layoffs that affected about 600 staffers last week were part of the efficiency push. Spotify’s profit margins were punished in 2022 by a hiring spree and its investment-forward battle plan, with operating losses growing 44 percent last quarter compared to the year prior. It was reported early last year that the company had already dropped more than $1 billion on podcasts alone—including the exclusive deal that brought Joe Rogan to the platform, which was reportedly north of $200 million.