Amazon lays off hundreds of employees in this division
What's the story
Amazon is laying off around 110 employees from its Wondery podcast studio as part of a major restructuring of its audio business. The move comes after the company's decision to merge Wondery's narrative podcast teams with Audible and shift its creator-led content to a new division called "Creator Services."
Leadership change
Wondery CEO Jen Sargent stepping down
As part of the restructuring, Wondery CEO Jen Sargent is stepping down. Steve Boom, Amazon's VP of Audio, Twitch and Games, announced the changes in a memo to employees. He emphasized that these changes are aimed at positioning Amazon to seize new strategic opportunities and improve the experience for creators, customers and advertisers.
Strategic shift
Layoffs mark major shift for Amazon
The layoffs and restructuring mark a major shift for Amazon, which acquired Wondery in 2020 to expand its original audio content offerings. Wondery was known for popular narrative podcasts like Dirty John and Dr. Death, as well as recent high-profile deals with shows such as New Heights (Jason & Travis Kelce) and Dax Shepard's Armchair Expert.
Strategic adaptation
YouTube's rise in video podcasting forces rethink
Boom acknowledged the rapid evolution of the podcast industry, with YouTube emerging as a major player in video podcasts. He said this has forced audio-first platforms to rethink their strategies. By merging Wondery's narrative content with Audible and separately focusing on creator-led initiatives, Amazon hopes to adapt to these changes. However, competition from YouTube's video-first model poses new challenges for Amazon's audio ambitions.