The streaming platform says the move is part of a “strategic realignment” Spotify Podcast Layoffs of around 200 employees—about 2% of its workforce—in its podcast division. It’s reorganizing to shift focus away from promoting its shows and toward improving the overall quality of podcasts on the platform, according to a blog post Monday by Vice President Sahar Elhabashi, who leads the company’s podcast business.
The music streaming service also combines its popular podcast networks Gimlet Media and Parcast into one. They will also remove their branding from the content they produce. A third famous studio, The Ringer, will remain independent.
In the past few years, Spotify leaned heavily into the podcast world. They signed high-profile exclusives with big-name personalities like Joe Rogan and Meghan Markle. It claims to be the most-used podcast platform in the world, with 100 million listeners and 5 million podcasts. The company’s podcast ad revenue has experienced high double-digit growth as well.
Spotify has faced challenges in the industry and its own business. They dropped a lot of shows last fall and recently canceled several more. pruning its original lineup to cut what it saw as underperforming content. Then it laid off 6% of its staff in January. This includes Chief Content Officer Dawn Ostroff. Ostroff grew podcast production 40-fold since joining the company.
Spotify explained its objective to improve the quality of its podcasts. They also aim to help creators maximize their success. It says it will focus on new formats, better monetization, and improved analytics for creators. It will also expand the podcast support team and invest in new ad tools.
Inside Spotify’s layoffs
Around 200 employees, including those involved in podcast production for the merged networks, such as the Ringer and independent studios, have unfortunately been affected by the recent layoffs at Spotify. The company has expressed its commitment to supporting finding new placements and offering severance packages to these affected individuals.
The reorganization will also see several senior executives take on new roles within the podcast group. Liliana Kim will lead current content for the reorganized Spotify Studios, and Liz Gateley will oversee development. Julie McNamara continues to oversee the studios’ organization. Bill Simmons remains Managing Director of The Ringer and head of podcast innovation and monetization. The company’s other original podcasts will remain in production. This includes Stolen, Science Vs., and Serial Killers. This move is a clear indicator that the industry has become increasingly strained. Companies like Spotify must find ways to reduce their costs to stay competitive.
