Spotify axes 200 jobs in podcast strategy shift

In a move to focus on maximizing value for creators in its podcast strategy, Spotify has announced the layoff of approximately 200 employees, accounting for 2% of its workforce, according to the music streaming platform. Spotify asserts its position as the most widely used audio podcast platform globally, boasting 100 million podcast listeners and experiencing a remarkable 10-fold growth since entering the space.

The decision to downsize is aimed at providing creators with enhanced discovery tools, greater flexibility in monetization, and expanded analytics capabilities. Spotify is renewing its podcast strategy by prioritizing format innovation, optimizing consumption, and supporting creators. As part of this transition, the company will consolidate resources and strengthen partnerships with leading podcasters worldwide.

Spotify attributes the organizational changes to this transition, resulting in the reduction of the global podcast vertical and other functions, affecting approximately 200 employees. Impacted individuals have been offered one-on-one conversations with the HR team, along with "generous" severance packages, extended healthcare coverage, and immediate access to outplacement support.

Julie McNamara, Vice President and Head of Global Podcast Studios, will continue to oversee Spotify Studios, with Liliana Kim and Liz Gateley assuming crucial roles in content and development, respectively. Bill Simmons will retain his position as the Managing Director of The Ringer and Head of Podcast Innovation and Monetization. Bryan Thoensen will lead the expanded teams supporting creator partnerships.

This strategic shift reflects Spotify's commitment to improving its podcast offerings and supporting creators in the evolving audio landscape. By streamlining operations and investing in key partnerships, Spotify aims to drive innovation and ensure a sustainable and prosperous future for its podcast platform.