Spotify cutting 200 jobs as part of podcasting ‘pivot’

Dozens of jobs are on the chopping block at Spotify as the music streaming platform enters the “next phase” of its podcasting strategy.

In a memo to staff on June 5, the company announced that it’s laying off approximately 200 employees, or two per cent of its workforce.

“We are expanding our partnership efforts with leading podcasters from across the globe with a tailored approach optimized for each show and creator,” Sahar Elhabashi, vice-president and head of Spotify’s podcast business, said.

“This fundamental pivot from a more uniform proposition will allow us to support the creator community better.”

The reduction comes just months after the company eliminated six per cent of its global workforce in January.

According to LinkedIn, Spotify employs more than 14,000 people. Over 200 are located in Canada.

Impact on Canadian staff

Spotify didn’t disclose how many employees in Canada are affected by the latest round of job cuts.

The company’s Canadian headquarters is currently located in Toronto, Ontario.

Major tech layoffs continue

Spotify joins the growing list of major North American tech companies that have announced sweeping layoffs in 2023.

Several big names, including Meta, LinkedIn, Dropbox, Dell, Amazon, Alphabet, and Clearco, are significantly scaling back their staffing levels as they continue to navigate challenging economic conditions.

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• Layoffs in Canada

Termination agreements for Spotify employees

As part of the layoff announcement, Elhabashi said Spotify will provide affected workers with “generous severance packages, including extended healthcare coverage and immediate access to outplacement support.”

In Canada, non-unionized employees at the music streaming platform are owed full severance pay when they lose their jobs due to downsizing or corporate restructuring.

This includes individuals working full-time, part-time, or hourly in Ontario, Alberta, and B.C.

Severance can be as much as 24 months’ pay, depending on a number of factors.

LEARN MORE
• Severance for technology industry employees
• Severance for provincially regulated employees
• Severance packages in mass layoffs

WATCH: Employment lawyer Lior Samfiru explains what rights employees have if they are being fired or let go on an episode of the Employment Law Show.

Before you accept any severance offer, have an experienced employment lawyer at Samfiru Tumarkin LLP review it and your employment contract.

We can tell you if what you have been provided is fair and how to get proper severance if it falls short of what you are actually owed.

If you don’t receive the full amount, which happens often, you have been wrongfully dismissed and are entitled to compensation.

In some cases, employers pressure staff into accepting poor severance packages, such as imposing a deadline for accepting the offer.

Non-unionized employees in Canada have up to two years from the date of their dismissal to pursue a claim for full severance pay.