Spotify announced on June 4th its plan to cut around 200 jobs in its podcast department, which manages the platform Spotify For Podcasters.
The company made an announcement a few months after downsizing its workforce by 600 employees in a significant wave of layoffs.
Company Expanded Collaboration With Prominent Podcasters
Sahar Elhabashi, the head of Spotify’s podcast division, conveyed in an internal memorandum that the company had made a difficult but necessary decision to reduce its workforce by 2% as part of its plan to merge Parcast and Gimlet Studios into Spotify Studios.
The affected employees have already been notified and have been given the opportunity to consult with the company’s HR department.
Elhabashi stated that they are expanding their collaboration with prominent podcasters worldwide, employing a customized approach for each show and creator. This strategic shift away from a more standardized approach will enable them to provide better support to the creator community.
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Assurances to Impacted Employees
The company has assured the impacted employees that they will receive generous severance packages, which include extended healthcare coverage and immediate access to outplacement support.
Spotify acquired Gimlet, Parcast, and Anchor in 2019 for a total of $400 million. In March 2023, Anchor’s platform, Anchor. FM was rebranded as Spotify For Podcasters.
Elhabashi explained that the decision to merge Gimlet and Parcast was made to allow Spotify Studios to concentrate on a more tailored partnership approach rather than a uniform one.
The Ringer, acquired by Spotify in 2020 for an undisclosed amount, will remain a separate business unit from Spotify Studios. The Ringer’s podcasts primarily focus on sports coverage and pop culture.
Elhabashi announced that Julie McNamara, Spotify’s vice president and head of global podcast studios, will continue to oversee Spotify Studios, while Bill Simmons will remain as The Ringer’s managing director and head of podcast innovation and monetization.
The announcement also included Spotify’s podcast metrics, revealing that the platform has reached 100 million podcast listeners across its 5 million programs. Podcast revenue has also experienced substantial growth from 2021 to 2022.
Building on its leadership position and insights gained, Spotify has recently initiated the next phase of its podcast strategy, aiming to deliver even greater value for creators and users. This entails maximizing consumption among their established audience through format innovation and ensuring the success of more creators in diverse locations.
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