Spotify: 200 jobs, or about 2% of Spotify’s global staff, will be lost as part of structural changes that the company has announced to overhaul its Podcast segment. Nearly five months have passed since the major music streaming company let go 600 workers due to macroeconomic factors. Sahar Elhabashi, vice president and general manager of Spotify’s podcast division, asserts in a blog post that the number of podcast listeners is continuing to rise and that the business is in a solid position in the market. According to Spotify, job losses in the division are “optimal” to go to the next stage.
Spotify Assures Affected Staff of Respectful Treatment and Comprehensive Assistance
Elhabashi acknowledges that “news like this is never easy” and pledges to treat everyone with “the utmost empathy and respect” throughout the procedure. According to the article, invitations for one-on-one conversations with HR have begun to be sent to affected staff. The music-streaming service continues by saying that it “will support these individuals with generous severance packages, including extended healthcare coverage and immediate access to outplacement support.”
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Spotify’s Push for Growth, High-Profile Collaborations, and Future Business Models
The popularity of podcasts has greatly grown over the past ten years across all platforms, and today there are numerous creators well-known for their devoted series in the health, technology, and true crime genres. To increase listenership, Spotify also bet on several well-known shows and landed high-profile collaborations. Even more than $1 billion was spent by the business to get exclusive contracts with The Joe Rogan Experience, Kim Kardashian, and Michelle Obama. At about the same time, Amazon began integrating podcasts into its other apps, including Audible. Additionally, Spotify plans to roll out “more business models” to support the financial independence of more creators. To increase listener numbers, creators will get analytics tools through Spotify for Podcasters. The Verge points out that the company’s stated higher ad income for podcasts in April coincides with the most recent employee cuts in the podcasting sector. It is still below where the corporation had anticipated it to be, though. On September 30 of the previous year, Spotify employed 9,800 people full-time. Spotify announced last year that it would reduce recruiting through the end of the year and into 2023.
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