Spotify layoffs: More details
In October 2022, Spotify laid off 38 employees from its Gimlet Media and Parcast podcast studios. The music streaming service currently has about 9,800 employees, according to the company’s third-quarter earnings report. The report adds that a Spotify spokesperson declined to comment on the upcoming job cuts.
While tech companies navigated uncertain global conditions, Spotify reportedly planned to cut new hires by at least 25% in June 2022. Earlier, the company discontinued its lightweight listening app “Spotify Stations”.
CFO of Spotify Paul Vogel said the company was well aware of “increasing uncertainty about the global economy” at the 2022 investor presentation.
The report adds that the music streaming platform had more than 433 million monthly active users (MAUs) in 2022.
Spotify’s commitment to podcasts
Spotify committed to podcasts in 2019 by spending more than a billion dollars to build software, acquire podcast networks, and serve as hosting services. The company even bought the rights to popular shows like The Joe Rogan Experience and Armchair Expert. However, in October 2022, Spotify reportedly shut down 11 original podcasts from its internal studios. The move was also part of cost-cutting and layoffs.
Almost 5% of the company’s employees who were part of the original podcasts were either reassigned to the new shows or were let go. The report also claims that Spotify may even shut down the “Horoscope Today” podcast by the second quarter of 2023.
This investment by the company tested the patience of investors, as Spotify shares fell 66% in 2022. Investors have also started asking the company about when they will start seeing revenue. In June 2022, Spotify executives said that its podcast business would be profitable within the next few years.
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