On Monday, the Swedish music streaming giant Spotify announced cutting its workforce by two per cent equalling two hundred positions, as it downgrades its internal podcast operations.
In a statement, Spotify noted that it had recently embarked on the next phase of its podcast strategy and was moving to a “tailored approach optimised for each show and creator.”
“Doing so requires adapting; over the past few months, our senior leadership team has worked closely with HR to determine the optimal organization for this next chapter,” read part of the statement.
“As a result, we have made the difficult but necessary decision to make a strategic realignment of our group and reduce our global podcast vertical and other functions by approximately 200 people.”
With 210 million paying customers, Spotify traded on the New York Stock Exchange, declared in April that it had surpassed 500 million monthly active users.
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The business also reported a first-quarter operating loss of 156 million euros, up from six million euros a year earlier.
The company blamed increased social charges and bigger personnel than a year earlier for the increased loss.
The streaming giant revealed it was eliminating 600 employees in January after similar actions taken by other titans of the digital sector.
Despite having a head start over competitors like Apple Music and Amazon Music and having high membership growth, the platform has only seldom produced a quarterly profit since its introduction and has consistently posted annual losses.
In recent years, Spotify has also made over a billion euros in investments in podcasting, but analysts claim the firm has yet to demonstrate that these investments are paying off.
