Just months after announcing a significant wave of layoffs, Spotify is planning to make further cuts. Spotify will now lay off about 200 employees from its podcasting division as part of the company’s “strategic realignment.”
The cuts were announced by Spotify's vice president and head of the podcast business, Sahar Elhabashi . The 200 employees set to lose their jobs represent about 2% of Spotify's global workforce
See also: Spotify still loses money, but predicts a return to profitability
Spotify promised that it would offer “generous compensation packages” to those employees who are laid off, which would include broad healthcare and immediate assistance in finding new work.
“We are expanding our collaboration efforts with top podcasters from around the world with a customized approach, optimized for each show and creator,” Elhabashi said. “This fundamental pivot will allow us to better support the community . However, doing so requires adaptation. Over the past few months, our senior leadership team has worked closely with HR to determine the optimal organization for this next chapter.”
See also: How to transfer playlists from Spotify to Youtube Music?
Spotify is said to be the No. 1 podcast publisher in the US , with more than 100 million listeners and 5 million shows. Elhabashi noted that Spotify will introduce new business models to help creators actually earn money from their work.
See also: Spotify Live: End of an era for Spotify's audio app
Last year, Spotify canceled 11 original podcasts and laid off a portion of its podcasting staff. The company likely chose to cancel underperforming shows in order to focus on its hits and new projects . However, the announcement of the new layoffs is very significant and could lead to significant changes to Spotify's content strategy in the coming months
Source: dailycaller.com
