Employees at Spotify’s podcast studios, including Parcast and Gimlet Media, are concerned about the lack of budgets and rumors of potential layoffs. Executives have not yet provided budgets for the year, hindering the approval of new shows and travel allowances for existing productions.
Spotify Head of Podcast Business Sahar Elhabashi addressed the budget confusion in April, stating that they wanted to ensure alignment across senior leadership, the podcast vertical, advertising, and markets before releasing budgets.
Spotify provided a statement mentioning that budgets are updated on a rolling basis and that they have several shows in active development and production. However, the lack of clarity regarding available funds, coupled with other cost-cutting measures such as travel restrictions, show cancellations, and office-related cutbacks, has left some employees worried. They interpret this situation as a sign that the company lacks a clear plan for new and original podcasts. Additionally, an anonymous post on the workplace social media network Blind, suggesting an upcoming reorganization of internal studios, has added to the unease among employees.
Spotify declined to comment on the Blind post. CEO Daniel Ek has repeated plans to make Spotify’s podcast arm profitable by 2024. The focus has also shifted towards trimming budgets, wide releases of original podcasts, aiming to reach a broader audience, and generating more advertising revenue from increased listenership.
