Spotify to put off 200 staff in podcast division By Reuters

2 views 3:10 pm 0 Comments June 5, 2023

© Reuters. Small collectible figurines are seen in entrance of displayed Spotify emblem on this illustration taken February 11, 2022. REUTERS/Dado Ruvic/Ilustration

(Reuters) – Spotify Expertise SA (NYSE:) stated on Monday it will minimize 200 jobs from its podcast unit in its second spherical of layoffs, as the corporate restructures the enterprise after years of heavy funding.

The transfer impacts about 2% of the music-streaming large’s workforce and aligns Spotify with the likes of Meta Platforms and Roku (NASDAQ:), which have additionally minimize jobs for the second time in response to an unsure economic system.

Shares of the Sweden-based firm rose about 0.5% in early buying and selling, outperforming a muted broader market.

Spotify had spent aggressively to construct up its podcast enterprise in recent times, hoping the upper engagement ranges supplied by the format will carry in additional advertisers.

However that led to a surge within the firm’s working expenditure, which grew at twice the pace of its income final yr. Rising rates of interest and excessive inflation imply that companies have additionally been dialing again spending on advertisements.

In response, Spotify minimize 6% of its workforce earlier in 2023 and introduced the departure of Daybreak Ostroff, who helped form its podcast enterprise and guided it by controversies such because the backlash round Joe Rogan’s present for allegedly spreading misinformation about COVID-19.

Sahar Elhabashi, who heads the podcast enterprise, stated on Monday that the corporate has “made the troublesome however crucial determination to make a strategic realignment.”

Spotify additionally stated it’ll merge its Parcast and Gimlet studios right into a single Spotify Studios division, which is able to produce Spotify originals.

The corporate would now take a tailor-made method for every present and creator, in contrast with the uniform method adopted beforehand, Elhabashi stated.

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