Spotify will cut 200 podcast posts

The world’s number one audio platform, the Swedish group Spotify, announced on Monday the loss of 200 positions in its podcasting activities, or 2% of its total workforce.

Less than six months after an initial cut of 600 jobs, the streaming platform said it had started “the next phase” of its “strategy”. podcast », after heavy investments made in recent years.

Spotify has taken the “difficult but necessary decision” to cut the workforce of its podcasting business by around 200 people, the New York-listed group said in a statement.

A historical leader in streaming, the Swedish platform has invested hundreds of millions of dollars in podcasting in recent years, also becoming number one worldwide.

But the profitability of this niche has yet to be demonstrated, according to analysts.

Around 10:30 a.m. on Wall Street, Spotify’s stock gained 2.70% to settle at $115.83.

At the end of January, the audio platform had already announced that it would cut 6% of its workforce to reduce costs.

Its managing director, Daniel Ek, then admitted that he had been too ambitious “by investing faster than [la] growth in the group’s turnover.

While Spotify has been profitable from time to time, the Stockholm-born group has consistently posted losses for several years, despite skyrocketing subscriber growth and a lead over rivals like Apple Music.

At the end of the first quarter, Spotify hit a new high of 515 million active users, up 22% year-on-year.

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source site-46