Spotify lays off 200 employees as a move to shift to new podcast strategy

Spotify has decided to lay off approximately 200 employees, which accounts for 2 per cent of its workforce. This decision comes as Spotify gears up for the next phase of its podcast strategy, focusing on maximizing value for creators, according to the music streaming platform.

Spotify claims to be the most-used audio podcast platform worldwide with 100 million podcast listeners. The company claims that experienced a remarkable growth of 10 times since its entry into the space. 

Spotify claims that with this move it aims to provide creators with better discovery tools, increased optionality and flexibility in monetization, and expanded analytics capabilities. The company is renewing its podcast strategy with a focus on format innovation, maximizing consumption, and supporting creators.

Spotify will be consolidating its resources and expanding partnerships with leading podcasters globally. Spotify blames this transition for the organizational changes, resulting in the reduction of the global podcast vertical and other functions, impacting around 200 employees.

The company claims that impacted employees have already been offered one-on-one conversations with the HR team and will receive "generous" severance packages, extended healthcare coverage, and immediate access to outplacement support.

Julie McNamara, the VP and Head of Global Podcast Studios, will continue to oversee Spotify Studios, with Liliana Kim and Liz Gateley playing crucial roles in current content and development, respectively. Bill Simmons will continue as the Managing Director of The Ringer and Head of Podcast Innovation and Monetization. The teams supporting creator partnerships will also see expansion under Bryan Thoensen's leadership.