STOCKHOLM (AFP) – Swedish music streaming giant Spotify on Monday said it would cut about 200 positions, or 2% of its workforce, as it streamlined its internal podcasting operations.
The Swedish-based company said it recently “embarked on the next phase of its podcast strategy” and is moving towards “a customized approach optimized for each show and creator.”
“To do that, we need to adapt. Over the past few months, our senior leadership team has been working closely with HR to determine the best organization for the next chapter,” Spotify said in a statement. .
“As a result, we have made the difficult but necessary decision to strategically reorganize our group and reduce our Global Podcasts division and other divisions by approximately 200 people,” the company added, adding that the company will continue to operate Spotify. It accounts for about 2% of the global workforce. .
The New York Stock Exchange-listed streaming giant announced in April that it had surpassed 500 million monthly active users and surpassed 210 million paying subscribers.
The company also posted an operating loss of €156 million (US$167 million) in the first quarter, compared with an operating loss of €6 million in the same period last year.
According to the company, the reason for the widening loss was an increase in the number of employees compared to the previous year and changes in social contributions.
The streaming giant announced about 600 job cuts in January, following similar moves by other tech giants.
The platform has posted only occasional quarterly profits and periodic annual losses since its launch, but has seen strong subscriber growth, outpacing rivals such as Apple Music and Amazon Music. Despite getting off to a head start.
Spotify has also invested more than €1 billion in podcasting in recent years, but analysts said the company has yet to prove its investments are paying off.