Amazon shuts down Wondery podcast studio, lays off employees and asks CEO 'to leave'; read VP's memo to staff
is closing its
Wondery
podcast studio and cutting approximately 110 jobs as part of a major reorganization of its audio business, according to Bloomberg News. The move signals the tech giant's strategic pivot away from its original podcasting ambitions amid industry-wide challenges. Wondery CEO Jen Sargent too will exit the company as existing shows are redistributed between Amazon's Audible platform and a new "creator services" team focused on personality-driven content, including the popular Jason and Travis Kelce podcast.
Podcast industry's shift to video format prompted Amazon's move
"The podcast landscape has evolved significantly over the past few years," Steve Boom, Amazon's vice president of audio, Twitch and games, wrote in an internal memo viewed by Bloomberg. "The rise of video has also blurred the lines on what it means to be a podcast creator."
Amazon purchased Wondery for roughly $300 million in 2020 during the podcast boom, initially allowing it to operate independently with its own subscription app. However, the company struggled to compete effectively with platforms like Spotify and YouTube as the medium evolved.
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"These changes will not only better align our teams as they work to take advantage of the strategic opportunities ahead but, even more crucially, will ensure we have the right structure in place to deliver the very best experience to creators, customers and advertisers," Boom explained in the memo.
The Wondery+ subscription service will now report to Audible, while the studio's narrative-driven content, including the popular
Dr. Death series
, will merge with Audible operations. High-profile talent shows featuring personalities like Dax Shepard will transition to the new
creator services team
, designed to better leverage sponsorship opportunities across Amazon's broader platform.
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