Spotify, the biggest music streaming service, announces the lay off of about 17 percent of its workforce, making it the third and largest round of lay-offs this year.
Spotify CEO Daniel Ek announces a 17% reduction in workforce due to economic challenges and the need to rightsize costs, affecting approximately 1,500 employees. Ek emphasizes the company’s commitment to remaining profitable and innovative through a leaner structure.
Lowe’s has revised its annual sales forecast downward as customer spending on do-it-yourself projects decreases, resulting in a nearly 13% drop in third-quarter sales. The company now expects a sales total of about $86 billion for the fiscal year, considerably lower than its previous outlook. CEO Marvin Ellison attributes the decline to a greater-than-expected pullback by customers on discretionary projects and big-ticket purchases, although sales to home professionals have risen. Despite these challenges, the company seeks to focus on providing value and convenience during the upcoming holiday season. Lowe’s third-quarter earnings per share of $3.06 slightly exceeded analysts’ expectations, but revenue fell short at $20.47 billion compared to the expected $20.89 billion. This reflects the broader trend in the home improvement industry, as both Lowe’s and its competitor Home Depot face cooling demand amidst a slowdown in Americans’ pandemic-driven home improvement frenzy and rising mortgage rates. On the bright side, Lowe’s net income for the fiscal third quarter saw a substantial increase from $154 million to $1.77 billion, driven in part by a $2.1 billion impairment charge. While Lowe’s stock has risen moderately this year, it lags behind the broader market performance. The company also faces stiff competition from Home Depot, which reported beating Wall Street’s fiscal third-quarter earnings and revenue expectations, despite a 3% drop in sales. Home Depot pointed out that while customers are still engaged in home improvement, they are increasingly tackling smaller and less costly projects. Meanwhile, Home Depot’s CFO expressed confidence in the waning inflationary pressure. In response to these challenges, Lowe’s stock performance has been relatively lackluster, closing at $204.44 on Monday, translating to a market value of nearly $118 billion.
Alibaba’s decision to halt the spinoff of its cloud group due to U.S. chip export restrictions led to an 8% drop in its shares. The company also reported a lower-than-expected net income for the September quarter but announced its first-ever annual cash dividend.
Home Depot sales decline amid inflation, projecting lowered outlook, but still surpasses analyst expectations for the quarter.
SoftBank, a major tech investment firm, has posted a $6.2 billion quarterly loss, affected by the collapse of WeWork and a decline in tech stocks.