Spotify To Begin Laying Off Podcast Staffers

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Kay Smythe News and Commentary Writer
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Spotify is laying off around 200 staffers from its podcasting division as part of the company’s “strategic realignment,” Variety reported Monday.

The cuts were announced in a memo from Spotify’s VP and head of podcast business Sahar Elhabashi Monday, Variety noted. The 200 employees set to lose their jobs represent roughly 2% of Spotify’s global audio-streaming workforce.

“We are expanding our partnership efforts with leading podcasters from across the globe with a tailored approach optimized for each show and creator,” Elhabashi said in the memo. “This fundamental pivot from a more uniform proposition will allow us to support the creator community better. 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.”

Spotify is the No. 1 podcast publisher in the U.S. and boasts more than 100 million listeners and 5 million shows, Variety noted. Elhabashi noted Spotify will be “leveling up” advertiser offerings and introducing new business models to help creators make real money from their work.

His memo followed the news that the CEO of international streaming giant Viaplay Group, Anders Jensen, stepped down amid economic downturns causing a huge deterioration of the ad market and subscribers, according to Deadline. (RELATED: REPORT: IBM To Freeze Hiring After Allegedly Finding 7,800 Jobs Can Be Done By Computers)

Projected sales targets at Twitter were also down 59% in the U.S., with rates expected to keep dropping, the New York Times reported Monday. Overall, Q1 of 2023 saw advertising revenue across all sectors drop roughly 10-25% below forecasts, Digiday noted.