Spotify to Slash Podcast Workforce, Combine Parcast and Gimlet Studios in New Round of Cuts

Music streaming giant Spotify is making a new round of cuts to its podcast division following a broad round of layoffs in January and job cuts in October.

In a memo to staff Monday morning from Sahar Elhabashi, the head of Spotify’s podcast unit, the company said that it would be reducing its workforce by about 2 percent, representing around 200 jobs.

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“We are expanding our partnership efforts with leading podcasters from across the globe with a tailored approach optimized for each show and creator,” Elhabashi wrote. “This fundamental pivot from a more uniform proposition will allow us to support the creator community better. However, 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.”

In addition, Spotify will merge its Parcast and Gimlet into a single Spotify Studios division, which will join The Ringer in producing Spotify originals. “Both studios will greenlight new shows with an increased focus on always-on programming that drives strong, loyal audiences and attracts advertisers,” Elhabashi wrote.

Spotify canceled 10 shows from Parcast and Gimlet in October, and named Nicole Beemsterboer and Liliana Kim to lead those divisions, respectively. Kim will run current content for Spotify Studios, joining Liz Gately, who will lead development. Julie McNamara will lead Spotify Studios Bill Simmons, who will continue to run The Ringer and lead podcast innovation and monetization.

“Our continued success in growing the podcast ecosystem is predicated on the necessity that the Spotify Machine is always in motion,” Elhabashi. “And with these changes, we will accelerate into the next chapter for podcasts on Spotify with strong discovery and podcast habits for users, thriving monetization and audience growth for creators, and a valuable, high-margin business for Spotify.”

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