Spotify is cutting two percent of its workforce, affecting around 200 employees mostly in the podcasting business.
Announcing the layoffs on Monday, the audio streaming company posted a newsroom statement(opens in a new tab) adapted from an internal memo by head of the podcast business Sahar Elhabashi. Spotify disclosed high numbers in the podcasting space — the platform said it's the number one podcast publisher in the U.S., with over 100 million podcast listeners — and indicated plans to continue growth through more partnerships with "leading podcasters" and more features for podcast creators.
"However, doing so requires adapting," reads the statement. "Over the past few months, our senior leadership team has worked closely with HR to determine the optimal organization for this next chapter. As a result, we have made the difficult but necessary decision to make a strategic realignment of our group and reduce our global podcast vertical and other functions by approximately 200 people, or 2 percent of Spotify’s workforce."
Spotify stated that those affected by layoffs have been invited for 1:1 conversations with HR, and will be provided with "generous" severance packages that include extended healthcare coverage.
The company has had both massive wins and notable controversies when it comes to its podcasting business. Since last year, Meghan Markle hosts original content exclusively on Spotify; concurrently, the infamous Joe Rogan Experience is also exclusively streamed on the platform. Spotify has paid big bucks for content, including a $200 million deal(opens in a new tab) acquiring media company Gimlet in 2019.
This is the latest round of layoffs in the tech industry. Amazon, Meta, and several other large tech companies have made employee cuts since the latter half of 2022. Spotify itself made a significant decision in January of this year, cutting around six percent of its global workforce.
