For the second time this year, spotify has announced a major layoff. A platform dedicated to audio 200 jobs In the podcasting department to integrate acquired companies Percast and gimlet under one flag.
The job cuts were announced in a public memo by Spotify’s vice president and head of content business. Sahar El Habashi. Elhabasi said the affected employees make up about 2% of Spotify’s total workforce.
Elhabasi said the cuts will allow Spotify to enter the “next phase” of its podcasting business. As a matter of fact, Spotify has realigned its audio programming assets, Spotify studio As the center of the podcast production department. Going forward, Parcast and Gimlet originals will be developed by Spotify Studios. As a result, Elhabashi said, it will launch a “unified proposal” that could better facilitate Spotify partnerships while supporting the creator community.
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“Our continued success in growing the podcast ecosystem is based on the need for the Spotify machine to always be on,” Elhabashi wrote. “And with these changes, Podcasts on Spotify, with strong discovery and podcasting habits for users, monetization and audience growth for creators, and a valuable and profitable business for Spotify, is heading into the next chapter.” We will accelerate.”
The new Spotify Studios are described as a “renewal” version of the organization that existed until 2022. The first version of Spotify Studios housed the original shows produced by the company in its early stages of promoting podcasting. After acquiring Gimlet and Percast, Spotify set aside its homegrown programs and eventually closed the studio amid a series of layoffs.
Spotify hopes to make its audio business more efficient by reviving studios. This is a key priority for companies that spend freely and regularly report losses in quarterly earnings calls. At the end of the first quarter of 2023, Spotify announced a quarterly loss of €225 million (about $248 million).
Spotify will continue to invest in its audio programming business as it strengthens. Over the past year, the Stockholm-based company has rolled out video podcasting around the world, debuted a new hub for audio creators and opened a state-of-the-art recording facility. In a note, Elhabashi said Spotify now has the following features: 100 million podcast listeners And audio platforms are poised for further growth.