Spotify has eliminated 200 roles, mostly in its podcast division, gutting two popular studios it acquired a few years ago.
responding to the layoffs, the union representing Gimlet and Parcast guild members, the Writers Guild of America, East, said that “as of today, Gimlet and Parcast no longer exist.” Members were informed Monday morning that the studios were being “absorbed into Spotify Studios,” it said.
The union noted that Spotify, which is based in Stockholm, had paid nearly $300 million to acquire the two studios, but then “wasted that opportunity” through missteps including canceling popular shows, it said. Spotify also restricted many shows to be exclusively broadcast on its platforms, “limiting the amount of revenue our studios could bring in,” the statement said.
Competitive strategies like exclusivity “haven’t really worked in an environment of so, so many podcasts,” said Amanda Lotz, a media consultant and academic based in Australia. She said the layoffs were “mainly tied to podcasts becoming overvalued very quickly,” adding that the cuts were a “natural adjustment rather than anything bigger.
“Supply has proliferated. Demand has not,” he said. “Pair that with a dip in advertising spending and something has to give.” Spotify did not immediately respond to a request for comment. Its stock was up 3 percent at close on Monday.
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