Streaming and Podcast giant Spotify was reported to be sacking 200 of their employees in the Podcast division as the company continues to streamline and restructure the company.
The said trimming down follows as the company decided to lay off 6% of their company this year. According to a release, the said laid-off workers were 2% of the entire workforce on the company's global outfit.
Why is Spotify Laying Off Podcast Employees?
According to Spotify Vice President and Head of Podcast Business Sahar Elhabashim, the move results from an expansion move of the company to give a "tailored approach optimized for each show and creator."
"This fundamental pivot from a more uniform proposition will allow us to support the creator community better. However, doing so requires adapting; over the past few months, our senior leadership team has worked closely with HR to determine the optimal organization for this next chapter," she said in a statement quoted by Variety.
Because of this, the company made the "difficult but unnecessary" decision to make realign its group and reduce its global podcast vertical, which resulted in the sacking of 200 employees.
The removal also comes with new opportunities for the company. Elhabashim affirmed to everyone that the podcast provider and streamer will stay committed to their "original programming."
They also announced that their major podcast groups, Parcast and Gimlet, would be merging following the recent streamlining to create a "renewed Spotify Studios operation."
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Spotify's Podcast Division New Plans
Despite the massive layoffs, Spotify continues to stand by its commitment to being a frontrunner in the podcast industry. To date, they are still the most-used podcast platform in the world and in the United States.
According to Elhabashim, their next mission is to focus on "delivering even more value for creators (and users!)," starting with "maximizing consumption from the massive audience" that they have established through the continuous innovation of their format and ensuring reach for more creators.
"Simultaneously, in collaboration with the podcasting community, we are broadening our analytics capabilities by expanding Spotify For Podcasters, which will help creators maximize their audience on Spotify and beyond," she said.
Earlier this January 2023, the company announced the start of layoffs, which prompted the resignation of Spotify Chief Content and Advertising Business Officer Dawn Ostroff, who was also the head of Spotify's Podcast division.
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