Spotify to Cut 200 Jobs in Podcast Division
Spotify is set to continue its layoffs in 2021, with the announcement that it will be cutting 200 jobs in its podcast division. This represents approximately 2% of the company’s workforce and is part of a “strategic realignment.” Spotify is shifting towards a more customized approach that maximizes resources for individual podcast creators and their shows, which it believes necessitates a more streamlined team.
The new strategy would also include Spotify merging its Gimlet and Parcast production houses into an updated Spotify Studios unit. They continue to produce well-known originals and debut new shows, albeit with a new focus on recurring content that grows large audiences. Spotify as a whole is “maximizing consumption” of the current audience and encouraging them to listen to more and more podcasts. The company is also increasing Spotify For Podcasters’ analytics, improving its advertising options and adding “more business models” to help creators become profitable.
The service provider has been keen to tout its growth since it began investing heavily in podcasts in 2019, including the acquisition of Gimlet, Parcast and creator platform Anchor. It now claims to be the most popular podcast platform in “most parts of the world”, with over 100 million listeners and 5 million shows. According to Spotify, usage has increased by more than 1,400 percent. It also says it is the largest publisher in the United States.
However, the layoffs added several blows to the company. Spotify reportedly ended several shows last fall, losing about 5 percent of its podcasting team in the process. The service also laid off 6 percent of its entire staff in January, and its chief content officer Don Ostrov (who was credited with a 40-fold increase in podcast content) at the same time. There were also issues with the content itself, including misinformation about Spotify’s exclusive Joe Rogan Experience. The company may be a powerhouse in this category, but it’s not as secure as it used to be.
