One other week, one other spherical of layoffs. This time, it is Spotify. Chief Government Officer Daniel Ek advised staff yesterday morning that the corporate was reducing 6 % of its workforce, saying he took “full duty for the strikes that introduced us right here at this time.” Essentially the most high-profile change is the departure of director of content material and promoting, Daybreak Ostroff. And whereas no extra reveals have been lower, promoting and enterprise staff, significantly at Podsights and Chartable, had been laid off almost a yr after Spotify acquired each firms.
Additionally (and I am totally conscious of how incongruous that is, apologies), now we have just a few extra bulletins for Sizzling Pod Summit.
After years of podcast acquisitions, Spotify goes lean
Spotify turned the largest pressure within the podcast business by means of sheer willpower (and capital), spending greater than $1 billion buying studios, publishers, and advert tech. He has additionally relied on veteran leisure govt Daybreak Ostroff for the previous 4 years to supervise blockbuster offers that introduced hits like Joe Rogan Expertise, name his daddyY batman unburied solely to the platform. Now, as a part of the company-wide layoffs, Spotify is popping to consolidation.
Ostroff does it of his personal free will, based on Ek’s letter. Accountable for its content material and advertisements vertical is head of subscriptions Alex Norstrom, who’s now director of enterprise. Discuss chiefs of content material Julie McNamara, Max Cutler and Invoice Simmons will report back to Norstrom.
“Working collectively, our podcasting group has revolutionized the area,” Ostroff mentioned. in a company memo yesterday. “The trajectory of this group has been superb, going from nearly zero market share and a handful of podcasts, to the main platform with over 5 million podcasts at this time and a 30x enhance in podcast consumption the world over. the platform”.
However (and this can be a huge however), Norstrom will not be a cheerful man. Going from having somebody like Ostroff, along with his deep roots in Hollywood, to a extra typical tech govt like Nostrom will inevitably end in a change in the way in which the enterprise is run. Maybe McNamara, Cutler and Simmons could have extra autonomy, or they could possibly be constrained by a tighter price range.
Ostroff apart, the content material facet has prevented the worst of the cuts this time. It does not appear like any extra packages have been lower, however that is most likely as a result of these groups took a success in October.
“We stay dedicated to constructing on our success in podcasts, delivering modern options for creators, and persevering with to spend money on O&E podcasts,” Spotify spokeswoman Rosa Oh mentioned. scorching pod.
On the promoting and enterprise facet, the brand new layoffs had been felt extra deeply. Workers who got here to Spotify as a part of Podsights and Chartable final yr had been among the many divisions affected by the layoffs. The acquisition of these two firms gave Spotify a larger means to measure the efficiency of reveals on the platform and put it in a greater place to promote advertisements. And it is working: The corporate elevated its advert income by 26% within the first 9 months of 2022 in comparison with the identical interval in 2021.
However these acquisitions added extra staff in comparable roles to these already working at Spotify, significantly since its Megaphone acquisition in 2020. There was “a variety of duplication in job capabilities,” based on an individual affected by the layoffs who requested to not be named to talk to others. speak freely about your former employer.
It is concerning the bigger downside that Spotify has but to discover a solution to make its many business podcast acquisitions (Anchor, Megaphone, Podsights, Chartable) work in concord. In keeping with the identical former worker, that hasn’t occurred but: “They nonetheless haven’t got an actual technique for his or her podcasts. There are all these completely different tech stacks.”
One other Spotify worker affected by the cuts felt the identical method. “There was a variety of confusion about the way it was all imagined to work collectively,” they mentioned, additionally requesting anonymity to talk about their former employer.
Because the 600 staff who misplaced their jobs yesterday attempt to get again on their toes, the corporate must work out as soon as once more the way to run essentially the most environment friendly group. And whereas layoffs are all the time destabilizing, they weren’t a whole shock both. I heard that within the months main as much as the cuts, staff had been advised to restrict enterprise journey to mission-critical occasions and noticed reductions of their meal and health stipends. Within the meantime, those that keep must make do with the workers they’ve: Spotify has eliminated all their job presents, except for internships.
Sizzling Pod Summit provides one other thrilling visitor, and a stay podcast recording
Sizzling Pod Summit is arising subsequent month, and now we have another thrilling programming information to share with you all: Conal ByrneCEO of iHeartMedia’s Digital Audio Group, will be part of us for an in-depth interview with Edge chief editor Nilay Patel. The interview can be a stay recording of Decodera weekly podcast of the sting which asks executives, innovators and coverage makers how they make choices and the place their industries are headed. We’re excited to host that dialog at Sizzling Pod Summit and attempt to reply some huge questions on the minds of many within the business.
If you happen to’ve acquired an invitation to the Sizzling Pod Summit, a fast reminder that at this time it’s the final day we will assure your home on the convention earlier than opening areas for extra friends.
And if you would like to return however aren’t on the checklist but, fill out our type right here by finish of at this time to tell us you have an interest.
Sizzling Pod Summit is a part of work x work’s On Air Fest, the premier cultural occasion for audio creatives and impressed listeners. This yr’s inventive pageant will happen February 23-25 on the Wythe Resort in Brooklyn, that includes Audie Cornish, Kara Swisher, Talib Kweli, Krista Tippett, John Cameron Mitchell, Craig Finn, Kevin Morby and particular classes with Audible, Paramount, Subject Studios. , Simplecast, Stitcher, Pushkin and Vox Media Podcast Community, and extra. You possibly can study extra and buy one-day and two-day tickets at www.onairfest.com. Plus, On Air presents the primary podcast fan expertise with immersive displays and rooms from Radiolab, Being, my favourite homicide, and extra. The podcast expertise runs all day from February 23-26. Tickets at www.experiencepodcasts.com
That’s all for now. I will be away subsequent week, so you will hear from Jake.
How the Spotify layoffs impact its podcasting business