How Layoffs Are Showing Up in Music Companies’ Earnings Reports

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Music company layoffs are showing up in earnings reports, which demonstrate that companies that cut costs had better margins and profitability.

The slew of earnings reports over the past two weeks have revealed that companies achieved better margins and greater profitability — even in cases with lower revenue or disappointing growth in some areas. And nearly all these companies share one important thing in common that boosted their latest earnings results: layoffs. the day after its second-quarter earnings showed recorded music subscription growth had slowed to 6.9%, down from 12.5% in the prior-year period.

Not all companies reporting earnings over the last two weeks had to lay off workers to improve their margins. French music streamer Deezer, citing improved cost control and margin improvement through more favorable terms with record labels,by 8 million euros . The company also raised its target for full-year adjusted EBITDA by 5 million euros .

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