Spotify, a popular music and podcast-streaming service, announced on Monday that it is reducing its podcasting division and laying off 200 people. According to Sahar Elhabashi, the Vice President and Head of Spotify’s podcast business, the layoffs are part of a fundamental pivot from a uniform proposition to a tailored approach optimized for each show and creator. This would enable the company to support the creator community better, but it requires some adaptations.
As a result, the company is making a strategic realignment of its group by reducing its global podcast vertical and other functions by 2% of Spotify’s workforce. In January of this year, the streaming service had cut roughly 6% of its staff, which was about 600 workers. At that time, the company’s CEO, Daniel Ek, had stated that they had been “too ambitious in investing ahead of our revenue growth.”
Despite the staff cuts, Spotify remains the most-used audio podcast platform in most corners of the world with over 100 million listeners. The company’s podcast ad revenue had also experienced high double-digit growth from 2021 to 2022. The layoffs at Spotify are the latest in a series of layoffs that have affected the tech sector amid an uncertain economic outlook.
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