Amazon is carrying out a massive restructuring in its audio business, resulting in the layoff of approximately 110 employees at Wondery, its podcast production arm. The move is part of a broader strategy to realign and streamline operations in response to shifting industry dynamics.
In a memo sent to employees, Steve Boom, Amazon’s Vice President of Audio, Twitch, and Games, announced that Wondery’s narrative podcast teams will be integrated with Audible. Meanwhile, creator-led content operations will transition into a newly established division within Amazon called “Creator Services”.
The reorganisation comes with leadership changes as well. Wondery CEO Jen Sargent will be stepping down from her role amid the overhaul. Bloomberg first reported the news of the layoffs and restructuring.
“This decision better positions us to pursue strategic opportunities that lie ahead, and to deliver an improved experience for creators, customers, and advertisers,” Boom stated in his internal communication. He acknowledged the difficult nature of the decision and confirmed that affected employees had already been informed, as per the report.
Changing Podcast Landscape
Amazon acquired Wondery in 2020 in a bid to strengthen its presence in the original audio content space. The company has since released several hit narrative series under the Wondery banner, including Dirty John, Dr. Death, and, more recently, high-profile partnerships with podcasts like New Heights by NFL stars Jason and Travis Kelce, and Dax Shepard’s Armchair Expert.
However, the podcast industry has been evolving rapidly. Boom noted the increasing dominance of YouTube in video podcasts, stating that platforms focused on audio-only formats must adjust to new audience preferences and monetisation models.
Focus On Flexibility And Future Growth
Amazon’s new structure aims to reflect the diverging needs of narrative-driven and creator-led podcast formats. By consolidating storytelling content under Audible and shifting creator-centric programming to its new “Creator Services” division, the tech giant hopes to better compete in a media environment where video-first content is gaining ground.
