Spotify announced on Monday that it will lay off 200 employees in its podcast division as part of a "strategic realignment." The reduction, which affects about 2% of the company's staff, comes after Spotify cut 6% of its global workforce in January, citing a slowdown in ad spending. Sahar Elhabashi, Spotify's VP and head of podcast business, conveyed the news in a memo to the employees, assuring them of generous severance packages. - Elhabashi said the company's strategy shift would allow for better support and monetization for its creator community
- In addition to the layoffs, Spotify plans to merge its Parcast and Gimlet podcasting studios into a single Spotify Studios division, focusing on producing original podcasts.
- The company will adopt a more tailored approach for each show and creator, as well as expand analytics in Spotify for Podcasters and focus on enhancing its advertising offerings, according to Elhabash.
As of 2020, Spotify employed 8,359 people worldwide, with 4,332 of them based in the U.S. - Over the past three years, Spotify has made substantial investments in its podcast division, totaling $526M through four acquisitions. Additionally, the company has nabbed significant sponsorship deals with notable personalities, including Meghan, Duchess of Sussex, and Joe Rogan.
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