Spotify is the latest US tech company to cut its workforce as companies strive for economic efficiency gains. Sahar Elhabashi, vice president at Spotify announced a “strategic realignment” of the company by reducing its workforce by 200 employees or two percent of Spotify’s workforce.

Elhabashi, who is also Spotify’s head of podcast business, announced that the company had reached the “next phase” of its “podcast strategy”.

The company has chosen to pivot “from a more uniform proposition…to support the creator community better,” Elhabashi wrote.

In the last three years, Spotify has invested heavily in its podcast unit.  According to an SEC filing, the digital audio content platform spent $526m on four acquisitions to strengthen its podcast business.

The “next phase” will involve the continuation of podcast services, including Ringer, and the integration of podcast companies Parcast and Gimlet.

In 2020, the company announced the Spotify Audience Network, an audio-first ad marketplace and the launch of Streaming Ad Insertion.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The news of Spotify’s job cuts follows a string of lay-offs by large tech companies beginning in 2022.

The pandemic saw significant increases in e-commerce volume and social media subscriber numbers.

But the global economic downturn has prompted concerns of an impending implosion of what some consider a tech bubble: tech shares are down by more than a third this year while private start-ups are struggling for funding.

Many industry experts believe that 2023 will continue to be a year of lay-offs for tech companies, with 300 companies having already cut 100,000 staff globally since January, according to data from