Spotify is undergoing another round of layoffs, this time impacting a major pillar of the company’s growth strategy: its podcast division.

Sahar Elhabashi, the head of Spotify’s podcast unit, said in an email to staff that the cuts would impact roughly 200 people, or 2% of total staff.

In Q1, Spotify’s podcast ad revenue was up by roughly 20% year-over-year, which the company said was driven by impression and CPM growth for its original and exclusive podcasts. In his email to staff, Elhabashi said the company would be expanding its partnership efforts in a way that was “tailored” to each show and creator.

“This fundamental pivot from a more uniform proposition will allow us to support the creator community better,” Elhabashi wrote. “However, doing so requires adapting; over the past few months, our senior leadership team has worked closely with HR to determine the optimal organization for this next chapter.”

In addition to deals with high-profile personalities like Joe Rogan, Spotify’s podcast strategy has also included acquiring studios such as Gimlet, Parcast and The Ringer. In addition to layoffs, Spotify announced that it would be combining the operations of Gimlet (which produces shows such as Science Vs. and Heavyweight) and Parcast (which produces a range of true crime, mystery and history programs). The combined Spotify Studios division will continue to produce new shows, with a greater focus on “always-on” programming that drives more listener loyalty and advertiser interest (Gimlet shows, in particular, tend to take a seasonal approach, with extended gaps in between as the next round of episodes is produced).

Earlier this year, Spotify laid off 6% of its staff, including chief content and advertising business officer Dawn Ostroff, who had been credited with leading the company’s podcasting push.

Many digital media companies have struggled in 2023 amid economic pressures and lagging advertiser demand. In April, Vice’s audio team was let go as part of wider layoffs at the company, which came just weeks before it filed for bankruptcy protection.