Spotify has announced it will lay off about 200 employees, or about 2% of its workforce, as part of an effort to change the way the streaming company operates in its partnership with “leading podcasters from around the world,” CNBC reports.
The layoffs were announced by Sahar Elhabashi, Spotify’s vice president, in a memo to employees, saying those affected would be provided “generous benefits.”
Elhabashi also said the “fundamental pivot from a more uniform proposition will allow us to support the creator community better.”
Since 2020, the company has spent 493 million euros ($526 million) on four different podcast acquisitions, according to a Securities and Exchange Commission filing.
In addition, Spotify has entered into sponsorship deals with celebrities such as Meghan, Duchess of Sussex, and Joe Rogan.