Deep Dives

Spotify Reduces Podcast Unit by 200 Jobs

June 5, 2023
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Company Restructuring: Spotify has announced on Monday that it will lay off approximately 200 employees, which constitutes about 2% of its total workforce. The restructuring is part of a strategy to change how the streaming company collaborates with leading podcasters worldwide.
  • With a workforce of 8,359 as of 2020, the layoff will see a reduction of personnel within the company.
  • The memo announcing the decision was released by Sahar Elhabashi, vice president at Spotify.
  • Spotify reassures that the employees affected by the layoff will receive generous severance packages.

  • Business Strategy Shift: Elhabashi also mentioned the company's move towards a less uniform business model, which is expected to provide better support for the creator community.
  • This suggests a significant shift in Spotify's strategy to be more tailored and supportive of individual creators, rather than a broad, one-size-fits-all approach.

  • Investment in Podcasts: Spotify has invested heavily in its podcast unit over the past three years.
  • Since 2020, the company has spent 493 million euros ($526 million) on four different podcast-related acquisitions, as reported in an SEC filing.
  • They have also pursued high-profile sponsorship deals with notable figures such as Meghan, Duchess of Sussex, and popular online personality, Joe Rogan.

  • Response: As of the time of reporting, Spotify has not yet provided any comments on the situation.

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