Audio streaming giant Spotify is laying off 2% of workers of its podcast division
After layoffs have been announced across the tech world, Spotify Technology SA (SPOT.N) said on Monday it would cut 200 jobs from its podcast division. The mass-redundancies come after Spotify has restructured the business.
The decision affects around 2% of the company’s workforce, putting it on a level playing field with companies like Meta who have also cut jobs for the second time in recent months.
In recent years, Spotify had invested heavily in its podcast business. The aim was to attract more advertisers through higher engagement levels. However, growth was slower than expected – and with operating costs at an all time high, businesses were cutting back on ad budgets.
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In response, Spotify cut 6% of its workforce earlier this year.
Sahar Elhabashi, who heads the podcast business, said on Monday that the company has “made the difficult but necessary decision to make a strategic realignment.”
Spotify also said it will merge its Parcast and Gimlet studios into a single Spotify Studios division, which will produce Spotify originals.
The company would now take a more tailored approach for each show and creator, compared with the uniform approach followed previously, Elhabashi said.
