Spotify: announces layoffs in its podcast division - Sectors

Spotify is a digital music service founded in 2006.

The music platform lost 225 million euros in the first quarter.

Swedish music platform Spotify announced this Monday the dismissal of 200 workers from its podcast division, which represents 2% of its workforce, in the second round of job cuts so far this year.

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The company reported that the second phase of its podcast strategy calls for a “strategic realignment” of the group to “maximize” consumption and help creators reach more audiences, according to a statement.

Spotify it has become the most listened to podcast platform in the world and the main publisher of this format in the United States, where the company has half of its staff. This currently has more than 100 million podcast listeners, according to data from the Swedish platform.

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Spotify had already announced at the end of January a 6% reduction of its staffdue to an increase in costs, as several technology companies have done in recent months, once the boom experienced during the coronavirus pandemic has passed.

The music platform lost 225 million euros in the first quarter due to higher personnel costs due to the increase in staff, according to the balance presented in April.

Spotify It expects operating losses of 129 million euros and a turnover of 3,200 million for the second quarter of this year.

The company expects to increase its number of users to 530 million and its paying subscribers to 217 million.