Layoffs to cost Spotify $140M – $155M as stock rise tops 10% [NYSE: SPOT]

Spotify stock opened up again on Wednesday, trading at $200.39 after the stock bucked two down days on Wall Street to rise 2.65% on Tuesday and 7.46% on Monday.

The upticks came after the streamer announced cutting almost 1,600 jobs or roughly 17% of its global workforce.

Spotify put the cost of the layoffs at $140 million to $155 million in a regulatory filing late Monday.

The costs are primarily “severance-related payments and the impairment of real estate assets as a part of optimizing the Company’s office space footprint in connection with the reduction in the employee base, partially offset by forfeitures of equity awards by departing employees.”

Layoff-related costs also shifted Spotify’s Q2 outlook from a $40 million projected profit to a loss of between $100 million and $107 million.

Bruce Houghton