Spotify’s podcast division is laying off 200 people. Spotify announced on Monday that it would be laying off approximately 200 employees, representing about 2% of its total employment. This move is part of an effort to change how the streaming firm cooperates with “leading podcasters from across the globe.”
According to a filing with the SEC, Spotify had a total staff of 8,359 workers worldwide in 2020, with 4,332 employees working in the United States.
In a statement to staff, Sahar Elhabashi, vice president of Spotify, revealed the company’s decision to slash jobs. Those affected will receive “generous severance packages,” according to Elhabashi.
Elhabashi stated that “fundamental pivoting away from a more uniform proposition will allow us to support the creator community better.”
Over the past three years, Spotify has poured significant money into expanding its podcast arm. According to a filing with the SEC, Spotify has spent 493 million euros, or about $526 million, on four separate purchases in the podcast industry since 2020.
Additionally, Spotify has gotten into high-profile sponsorship arrangements with notable figures such as Meghan, the Duchess of Sussex, and Joe Rogan, an internet personality.