Streaming company Spotify announced on Monday that it is laying off 200 of its podcast division staff in its second round of layoffs. The layoff will affect two percent of the Swedish music streaming platform’s workforce.
Spotify has invested heavily to expand its podcast service in hopes that the increased levels of audience engagement will attract more sponsors.
The company’s operating expenses soared, growing last year at a rate that was twice as fast as its sales, as interest rates and inflation skyrocketed, affecting businesses’ spending on advertising.
As a result, Spotify cut six percent of its workforce in early 2023 and announced the departure of Dawn Ostroff, who helped Spotify create its podcast business.
“The company would now take a tailored approach for each show and creator, compared with the uniform approach followed previously,” said Sahar Elhabashi, head of Spotify’s podcast business.
Spotify will merge its Parcast and Gimlet studios into a single Spotify Studios division, which will produce Spotify originals.
