Spotify Technology SA plans to lay off about 200 employees, or roughly 2% of its workforce, as it shifts its strategy around podcasts.
The company announced Monday that it’s making a “fundamental pivot” from offering “a more uniform proposition” to tailoring its approach based on different podcasts and creators.
“As a result, we have made the difficult but necessary decision to make a strategic realignment of our group,” Spotify
said in a post shared to its corporate newsroom. the company announced prior layoffs, impacting almost 600 employees, back in January.
Spotify said it plans to combine its Parcast and Gimlet businesses “into a renewed Spotify Studios operation that will continue to produce a wide range of high-impact originals,” while The Ringer will continue to make sports, culture, and tech shows.
Podcast creators “have embraced the global audience on our platform but want improved discovery to help them grow their audience,” the company said in its post. “We also know that they appreciate our tools and creator support programs but want more optionality and flexibility in terms of monetization.”
Shares of Spotify were ahead 2.4% in Monday morning action.
The company has been investing in podcasts since early 2019, according to the newsroom post, and it now has 100 million users who listen to podcasts through its platform. Spotify said the changes will help make podcasts a “valuable, high-margin business.”