Spotify Streamlines Podcast Operations, Cuts 200 Jobs in Strategic Realignment

Stockholm: Swedish music streaming leader Spotify revealed plans on Monday to streamline its podcast operations, resulting in a reduction of approximately 200 positions, equivalent to two percent of its workforce. The company stated that it is entering the next phase of its podcast strategy, which involves a customized approach tailored to each show and creator.

This shift necessitates organizational adjustments, and after careful collaboration between senior leadership and HR, Spotify made the difficult but necessary decision to realign its group and downsize its global podcast vertical and other functions. The reduction in workforce represents about two percent of Spotify’s overall employee count.

Spotify, a publicly traded company listed on the New York Stock Exchange, recently surpassed 500 million monthly active users, with 210 million paying subscribers. However, in the first quarter, it reported an operating loss of 156 million euros ($167 million), compared to a six million euro loss the previous year.

The wider loss was primarily attributed to increased headcount and changes in social charges. This development follows Spotify’s announcement in January of a reduction of approximately 600 jobs, following similar actions taken by other prominent tech industry players.

Despite its strong subscriber growth and being an early mover in the market ahead of competitors like Apple Music and Amazon Music, Spotify has struggled to consistently generate quarterly profits. Annual losses have been a recurring occurrence, despite the company’s significant investment of over one billion euros in the podcasting space. Analysts suggest that Spotify has yet to demonstrate substantial returns on its podcasting investments.