Spotify layoffs are back for another round! As per updates, this round of Spotify layoffs has hit another 200 employees in the podcast unit of the company.
According to a Reuters report, this round of Spotify layoffs amount to roughly 2 per cent of the company’s global workforce. Before this as well, Spotify cut about 600 jobs globally as part of its restructuring process.
The report adds that Sahar Elhabashi, head of Spotify’s podcast division said in an internal memo that the company would indulge in layoffs, impacting about 2 per cent of its workforce. “We are expanding our partnership efforts with leading podcasters from across the globe with a tailored approach optimized for each show and creator,” the publication quoted Reuters as saying.
Another report adds that Spotify layoffs come at a time when the company’s audio-heavy investments in podcasts have come under the scrutiny. Several analysts have questioned as to when these investments will pump up the revenue.
The Reuters report on Spotify layoffs also adds that Elhabashi said that the company "made the difficult but necessary decision to make a strategic realignment."
In addition to this, Spotify also said that it will merge its Parcast and Gimlet studios into a single Spotify Studios division, which will produce Spotify originals.
These layoffs at Spotify and several other companies across the world come at a time when the global economy braces and manages itself from the after-effects of an economic downturn. While many have suggested that the trend would continue in all of 2023, others expect companies to slowly start reviving.
