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Spotify Announces Workforce Reduction Amid Slow Economic Growth

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Spotify Announces Workforce Reduction Amid Slow Economic Growth

To address growth and reduce expenses Spotify, the renowned music streaming platform has recently announced its plans to reduce its workforce by, around 17%. This decision comes after the company reported an operating profit and significant growth in users during the previous quarter.

Daniel Ek, the CEO and founder of Spotify highlighted the importance of reallocating resources towards opportunities that have an impact. He acknowledged that this reduction might come as a surprise given the earnings report.

In response to a changing environment, Spotify has made investments in team expansion, content enhancement, marketing efforts, and exploration of new avenues over the past year. However, with cost structures larger than necessary for their requirements, the company is now implementing a leaner structure that allows for more strategic reinvestment of profits.

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Daniel Ek will provide insights into the rationale behind these workforce reductions. Outline plans, in an “Unplugged” session. This move follows job cuts in January this year, where 6,000 employees were let go and an additional 200 jobs were trimmed in June 2022.

These modifications also resulted in changes, within the company’s management, including CCE Dawn Ostroff leaving her position.

Also Read: Gautam Adani’s net worth increased by $5.6 billion in 6 days

Ever since its launch, Spotify has been dedicated to increasing growth by investing more than a billion dollars into podcasts. The company has experienced significant expansion, with its employees expanding from roughly 3,000 in 2017 to approximately 9,800 by the end of 2022. However, the current economic atmosphere necessitates a reevaluation of Spotify’s workforce size and structure.

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In addition to the workforce decrease, Spotify recently declared modifications to its musician royalty payment scheme, planned to take effect in early 2024. The streaming platform will necessitate no less than 1,000 streams over 12 months before paying out royalties to musicians. This change aims to guarantee a fairer distribution of earnings and support musicians who generate consistent streaming traffic.

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With unsecured personal loans under lens, growth momentum in the segment to derail in coming quarters

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With unsecured personal loans under lens, growth momentum in the segment to derail in coming quarters

New Delhi, Feb 26 (IANS) ICICI Securities has warned of a potential derailment of growth momentum in unsecured personal loans due to recent regulatory actions. The report highlights concerns over accelerated growth in unsecured loans and the impact on NBFCs.

The regulatory measures by the RBI include an increase in risk weights on unsecured consumer credit and banks’ funding to NBFCs. This is aimed at prompting lenders to reassess their growth strategies in light of the heightened credit growth in unsecured personal loans since the onset of the Covid pandemic.

The surge in credit demand for personal and consumer loans was driven by factors such as disruption in cashflow for small SMEs, temporary unemployment during the Covid phase, and a focus on lifestyle upliftment. Additionally, tech upgrades during Covid simplified credit delivery and expanded the reach for NBFCs.

Many NBFCs have adapted to the demand by revamping their processes and partnering with fintechs to leverage their balance sheet. Consequently, credit growth in personal and consumer loans has exceeded 100 per cent CAGR for most NBFCs, far surpassing the sub-20 per cent blended growth between FY21 and December 2023.

The cumulative AUM of NBFCs analyzed in the report amounts to Rs 10 trillion, with unsecured loans exhibiting even faster growth rates. Some players have reported unsecured loan CAGRs exceeding 100 per cent between FY21 and December 2023. This trend underscores the significant impact of unsecured personal loans on the overall credit landscape for NBFCs.

–IANS

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India seeks greater say for developing countries at WTO meet

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India seeks greater say for developing countries at WTO meet

India advocates for flexibility in existing WTO agreements for developing countries at 13th Ministerial Conference

Abu Dhabi, Feb 26 (IANS) India emphasized at the 13th Ministerial Conference of the WTO in Abu Dhabi that developing countries need flexibility in current agreements to address constraints in industrialization. Commerce Secretary Sunil Barthwal led the Indian delegation, highlighting the need for appropriate policy space to tackle longstanding issues.

India raised concerns about combining development issues with new topics like “Trade and Industrial Policy” and objected to integrating Gender and MSMEs discussions within WTO, stating they are already addressed in other international forums.

In discussions on sustainable development and policy space for industrialization, India stressed the importance of maintaining focus in the multilateral trading system and avoiding mixing non-trade issues with the WTO agenda. The country also promoted a sustainable lifestyle approach, including the LiFE movement for environmental conservation.

Furthermore, India expressed apprehension about the rise of trade protectionist measures under the guise of environmental protection, calling for a balanced approach. The nation urged for a sustainable way of living based on traditions and conservation values to combat climate change effectively.

Journalist: IANS
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SEBI receiving complaints regarding fraudulent trading platforms falsely claiming affiliation with FPIs

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SEBI receiving complaints regarding fraudulent trading platforms falsely claiming affiliation with FPIs

New Delhi, Feb 26 (IANS) Markets regulator SEBI has issued a warning to investors regarding fraudulent schemes claiming affiliation with SEBI-registered Foreign Portfolio Investors (FPIs) and offering stock market access through FPIs or FIIs.

SEBI has been flooded with complaints about trading platforms falsely associating themselves with FPIs and FIIs and luring individuals through online trading courses and mentorship programs. These fraudsters manipulate social media platforms like WhatsApp and Telegram to deceive victims into downloading applications for trading privileges without the need for official accounts.

The regulatory body highlighted that the FPI investment route is not available to resident Indians, with few exceptions as per the SEBI (FPI) Regulations, 2019. SEBI emphasized that there is no provision for an “institutional account” in trading, and investors must have a trading and Demat account with a SEBI-registered broker/trading member and DP for direct access to the equities market.

SEBI clarified that no relaxations have been granted to FPIs regarding securities market investments by Indian investors. The market regulator urges investors to exercise caution and avoid falling prey to fraudulent schemes propagated through social media and online channels claiming unauthorized stock market access through FPIs or FIIs.

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