Amazon overhauls Wondery podcast studio, cuts 110 jobs
About 110 employees will be laid off as part of the process, while many Wondery employees will transition to other parts of Amazon, the company said in an emailed statement on Monday.
Wondery CEO Jen Sargent will depart the company following a transition period, the memo said.
Intense competition in the expensive podcast industry as well as a growing focus on creator-led video content have prompted audio streaming companies including Spotify to diversify their podcasts as they look to lower costs and attract more users to their platforms.
"As video podcasting has grown in popularity, we have learned that creator-led, video-integrated shows have different audience needs and require distinct discovery, growth and monetization strategies compared to audio-first, narrative series," Steve Boom, vice president of audio, Twitch and games at Amazon, wrote in the memo.
Wondery was acquired by Amazon in 2021 and has seen podcast revenue quadruple since then as the studio expanded its slate to include video podcasts and creator-driven series, according to the memo.
Under the new structure, Wondery's narrative podcast studio - home to shows such as "Dr. Death" and "American Scandal" - along with the Wondery+ subscription service, will move to Audible, the e-commerce giant's audio platform.
Its creator-focused podcast team that produces shows including "Mind the Game", "New Heights", and "Armchair Expert" will join a new Creator Services group within Amazon's Talent Services division.
This new team will continue to operate the creator-focused podcast studio under the Wondery brand.
"By making these changes, we can better support creators in monetizing their content across multiple channels," Amazon said.
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