In addition to the series of layoffs, Spotify was forced to cancel 11 original podcasts from its in-house studios, including ‘How to Save a Planet’, ‘Crime Show’ and ‘Medical Murders’.
music streaming platform Spotify Technology SA (NYSE: SPOT) has announced It plans to cut its workforce by 2%, leaving 200 employees without jobs.
According to the announcement, Spotify is doing this exercise as part of an effort to diversify how the company handles partnerships with podcasters globally. The layoff exercise is peculiar to the company’s podcast division and comes after a general round of layoffs in January.
Spotify Vice President Sahar Elhabashi announced the sad news in a memo to all employees. They believe that this move will help the organization channel to give proper support to the maker community.
According to the published statement, after consulting with its HR team on optimizing the organization, the firm noted that it was “difficult to strategically restructure our group and reduce our global podcast vertical and other functions by approximately 200 people.” but made the necessary decision, or 2% of Spotify’s workforce”.
Support for affected Spotify employees
Affected individuals will receive a severance package that includes expanded healthcare coverage and immediate access to relocation assistance. As of 2020, the digital music streaming giant had a massive workforce of 8,359 people, including 4,332 in the United States, based on the Securities and Exchange Commission.secondsFiling.
However, in October 2022, the company decided that the services of 38 employees at its Gimlet Media and Parcast podcast studios were no longer needed, therefore downsizing. Again in January 2023, Spotify hinted In another round of layoffs but this time, Spotify had a workforce of around 9,800.
In the current move, the layoffs were attributed to the continuing economic slowdown. A statement from Paul Vogel, Spotify’s chief financial officer, suggested the Stockholm-based company is “clearly aware of the growing uncertainty about the global economy”.
In addition to the series of layoffs, Spotify was forced to cancel 11 original podcasts from its in-house studios, including ‘How to Save a Planet’, ‘Crime Show’ and ‘Medical Murders’.
Going forward, Parcast and Gimlet will be merged into a new Spotify Studio operation.
Spotify spends a lot of money on podcast units
Spotify’s Market Expansion The drive has been outstanding throughout the year. The company attempted to diversify and grow its earnings from music streaming through aggressive expansion into other revenue-generating formats such as podcasts.
Also, it’s worth noting that Spotify has put so much effort into expanding its podcast unit, signing sponsorship deals with several top entities such as Meghan Markle, Duchess of Sussex, her husband Prince Harry, and Joe Rogan, online personality. to do is included.
At one point, the firm inked a podcast deal with famous TV personality Kim Kardashian, and that sent its shares reasonably high. The music streaming firm has spent over $1 billion in strategic business acquisitions of multiple audio broadcasting platforms.
Benjamin Godfrey is a blockchain enthusiast and journalist who loves to write about real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies drives his contributions to well-known blockchain-based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
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