Spotify has made significant investments in podcasting in recent years, having acquired several studios. Spotify has decided to close Studio 4, its original podcast studio.
The verge reported Tuesday that Spotify had told Studio 4 employees it would close after January 21. Spotify creates original shows such as Dissect and Chapo the Kingpin on Trial at Studio 4. Although this studio isn’t the only one owned by Spotify, it was the first studio to be created in-house before major studio acquisitions.
The report states that the employees affected were shocked by the announcement. Some were transferred to new positions while others were let go with the option to apply for another position at Spotify.
Studio 4 will be shut down by the company. However, the company refused to comment but stated in an internal memo that it was making the decision to “move faster and make greater progress” and to facilitate better collaboration among its employees.
Others complained that Spotify considered Studio 4 a “junk drawer”, for projects that weren’t compatible with other studios it acquired.
Although it is unclear what will happen to all Spotify shows created at Studio 4, it appears that not all will be canceled. The official Twitter account of the Dissect Podcast stated that the podcast will not be canceled and that it will continue on Spotify.
Spotify launched paid podcast subscriptions last year after the introduction of ApplePodcasts subscriptions. Spotify’s podcast platform has also outperformed Apple Podcasts in terms of listenership in the United States. The company will still produce original podcasts using the studios it acquired.