Spotify Technology SA (NYSE:SPOT) shares got a boost from its plan to reduce hiring "and be a little more prudent" over the next few quarters.
Chief executive Daniel Ek notified the audio app company's workers via email that it would slow the pace of recruitment by 25%, having added more than 2,000 new employees between 2019 and 2021 to take it total to 6,617 at the end of last year.
Soon after the news was reported, shares hit a session high, closing up 7.45% to US$105.35 overnight, though are trading down 3.6% in pre-market trading on Thursday.
At an investor conference earlier this month, Spotify chief financial officer Paul Vogel said the company was monitoring global economic uncertainty.
And in spite of the lack of material impacts on business, he said, "We are keeping an eye on the situation and evaluating our headcount growth."
Ek also said at the investor day that he believed the company would generate US$100bn in revenue over the next ten years.
Investors were given a positive assessment of Spotify earlier this month too as the company predicted its investments in podcasts and audiobooks would fuel growth over the next decade.
With the recent announcement, Spotify joins a long list of companies who have cut hiring or announced layoffs due to inflation and the Ukraine crisis.