Spotify anticipates another round of layoffs just months after announcing a large one. This time, the corporate reorganization will cut podcast jobs. In addition, Parcast and Gimlet Studios will be merged.
Spotify’s podcast leader, Sahar Elhabashi, announced a 2% headcount decrease in an internal memo. 200 jobs will be affected by this move, and HR has invited individuals affected to talk.
“We are expanding our partnership efforts with top podcasters worldwide with 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,” Elhabashi stated.
“However, doing so requires adapting; our senior leadership team has worked closely with HR over the past few months to determine the optimal organization for this next chapter. As a result, we have made the tough but essential decision to realign our group and cut our global podcast vertical strategically and other activities by about 200 individuals, or 2% of Spotify’s workforce,” she said.
Spotify promised layoffs “generous severance packages, including extended Healthcare coverage and immediate access to outplacement support.”
Spotify bet heavily on exclusive podcasts in 2019. First, the company bought Parcast and Gimlet Media. The corporation spent $200 million on Gimlet Media and $56 million on Parcast to enter first-party programming.
However, the corporation is reducing its content approach. Parcast and Gimlet joining Spotify Studios is proof. Sahar Elhabashi lists “Stolen,” “The Journal,” “Science Vs,” “Heavyweight,” “Serial Killers,” and “Conspiracy Theories” as active podcasts in her memo.
The Ringer, another content company Spotify acquired, will stay independent from Spotify Studios. The Ringer covers pop culture and sports.
Spotify shared podcast metrics with this announcement. Spotify claims 100 million podcast listeners over 5 million broadcasts. In addition, podcast ad income grew “high double-digit” from 2021 to 2022.
“Given these learnings and our leadership position, we recently embarked on the next phase of our podcast strategy, which is focused on delivering even more value for creators (and users!),” Elhabashi stated in her memo. “Maximizing consumption from the massive audience we’ve established through format innovation and ensuring that more creators in more places succeed.”
Spotify cut 11 original podcasts and some personnel last year. The business presumably canceled poor series to focus on hits and make a place for new ones. As a result, today’s action could impact Spotify’s original content strategy in the coming months.
