“Too many podcasts with too little audience.”

“It’s really a supply-and-demand issue,” Wang said. Ray Wang, principal analyst at Constellation Research, said Spotify’s approach was too costly, which is why it is making these changes. Last year, the company cut roughly 40 people from its podcast staff and scrapped 11 shows. Spotify has become a top podcast publisher, with more than 100 million monthly podcast listeners, according to the company.īut the cost of getting there, including expensive deals with newsmakers and celebrities, has come under scrutiny. The company heavily invested in podcasting over the years, buying several production companies such as Gimlet and Parcast and expanding its footprint in downtown Los Angeles with a campus that includes a building known as “ Pod City.” “Looking ahead, as a key component of our focus on creators, we remain committed to original programming,” wrote Sahar Elhabashi, vice president of podcast business, in an internal update that was adapted and shared on Spotify’s website. The Stockholm-based audio company said podcast production companies Gimlet and Parcast will be combined into a “renewed Spotify Studios operation” that will be overseen by Julie McNamara, head of global podcast studios. Earlier this year, Spotify trimmed its staff by 6% or roughly 600 people, with Chief Executive Daniel Ek citing the increased importance of efficiency. The layoffs come amid increased pressure for tech companies to cut costs and boost profits in an uncertain economic environment. Spotify is reducing its staff by 200 people, or about 2% of its workforce, as the company restructures its podcast division, the Swedish streaming audio giant said Monday.

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