Post by account_disabled on Feb 27, 2024 8:56:48 GMT
This is Hot Pod , The Verge' podcasting and audio industry newsletter. Sign up here for more. The dust is still settling on Spotify's latest round of layoffs. On Monday, Spotify announced it would cut 17 percent of its workforce, or about 1,500 employees, as a way to make the company even more efficient. This round of layoffs dwarfs the last two this year, with the company cutting around 600 employees in January and another employees (mostly from podcasting) in June. Details are still being released, but it appears the cuts are affecting people across the company, from product to content to advertising. “I realize that to many, a reduction of this magnitude will seem surprisingly large, given the recent positive earnings report and our performance.
We discuss making minor reductions throughout CEO Philippines WhatsApp Number Daniel Ek said in a letter to employees. "However, considering the gap between our financial target statement and our current operating costs, I decided that substantial action to correct our costs was the best option to achieve our goals." Such deep cuts are shocking when the economy is growing and the company is making a profit. Unlike many other layoff announcements, this one didn't spend much time dwelling on macroeconomic factors. Rather, it is an unequivocal attempt to appease investors. And in the short term, it's working: Spotify shares are up nearly 11 percent from where they were at the market close on Friday.
Today, I have some key takeaways from the layoffs so far. Spotify no longer bets on the Pulitzers If Spotify was ever serious about creating in-depth narrative podcasts, it certainly isn't now. Among its numerous cuts, the company has decided to cancel Heavyweight after its current season concludes. It's one of Gimlet's flagship podcasts and a beloved show among people in the industry. He's also cutting investigative podcasts. Stolen that Gimlet released in and won the Pulitzer Prize in Audio Reporting and a Peabody Award this year. The cancellations come after Spotify cut shows like Reply All and How to Save a Planet , laid off the vast majority of Gimlet staff, and merged what was left of Gimlet into Spotify Originals in June.