Spotify will cut 200 jobs in its podcast unit
Just a few months after announcing a significant wave of layoffs, Spotify plans to conduct another round of layoffs. This time, the job cuts will affect the podcast division as part of a corporate reorganization. In particular, the company plans to merge Parcast and Gimlet Studios.
In an internal memo, Sahar Elhabashi, Spotify’s head of the podcast division, announced that the company was making changes that would lead to a workforce reduction of 2%. This change will affect around 200 jobs and those who are impacted have already received an invitation to talk with someone from the HR department.
“We are expanding our partnership efforts with leading podcasters from across the globe 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 wrote.
“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. 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% of Spotify’s workforce,” she continued.
Spotify promises that employees who are affected by the layoffs will get “generous severance packages, including extended Healthcare coverage and immediate access to outplacement support.”
In 2019, Spotify made a big bet on podcasts, and on exclusive content in particular. The company acquired some popular podcast networks, such as Parcast and Gimlet Media. This move into first-party content was an expensive one as the company spent around $200
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