Spotify is undergoing a reorganization of its ad sales division, dismissing 40 employees globally from its account and campaign management teams. This comes as the streaming giant focuses on programmatic advertising for small- and medium-sized businesses.
The current layoffs represent about 0.5% of the overall workforce and 2.7% of the ad sales team.
As first reported by AdAge, a Spotify spokesperson shared that the restructure would consolidate the existing positions and eliminate 17 yet-to-be-filled roles, without divulging further details.
Under the new structure, the account and campaign management teams will be merged into a single unit, dubbed the “customer success team,” to be led by Pete Finnecy, the former head of account management for the Americas. Accenture will now support the revamped customer success team.
This adjustment mirrors actions taken by other tech giants like Google, which earlier this year also restructured its ad teams to better serve smaller clients. In its latest earnings report, Spotify revealed that its ad-supported revenue tier had seen an 18% increase, generating over $420 million.
Last year, Spotify undertook a significant reduction in its workforce, cutting approximately 17% of its staff across multiple departments, as the company pushes for profitability under a vice grip of pressure from shareholders. Spotify reported stronger than anticipated fiscal Q1 2024 earnings, posting a profit of $210 million with operating income at $179 million. This represents a turnaround from previous losses, with earnings per share at €0.97, surpassing analyst forecasts.