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Spotify Podcast Union Says Corporate Decisions Led to Audience Collapse

Gimlet Media and Parcast union representatives say 30% of their respective units were laid off

Photographer: Gabby Jones/Bloomberg
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Union members at two of Spotify Technology SA’s podcast studios said a decision by the company to put their shows exclusively on its own streaming service led to a drop in listeners, and a subsequent decision to cancel programs and fire workers.

Spotify said Thursday that it was ending 11 podcasts and terminating employees. Union representatives at the company’s Parcast and Gimlet Media studios issued a joint statement in response on Friday saying each had 30% of their members let go. About 38 people lost their jobs in total. Some of their programs had lost up to 75% of their listeners after going exclusive, the employees said, and Spotify management didn’t do enough to stop the decline.

“Shows languished without marketing support, and teams were not given clear audience goals to meet,” the union representatives wrote. “The strongest indication these employees received that their shows were not meeting Spotify’s goals was when they were laid off yesterday.”

Spotify declined to comment. The music streaming giant has made a big push into podcasting in recent years, acquiring studios and launching new shows. But the company now seems to be in a period of retrenchment.