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Amazon is undertaking significant changes in its audio business, announcing layoffs of approximately 110 employees within its Wondery podcast division and the departure of Wondery CEO Jen Sargent. This shakeup is part of a broader effort to realign and streamline Amazon’s growing audio content portfolio under a unified strategy.

Consolidation and Leadership Shift

In an internal memo to staff obtained by CNBC, Steve Boom, Amazon’s Vice President of Audio, Twitch, and Games, outlined the company’s plan to merge Wondery’s narrative podcast units under Audible, Amazon’s audiobook and podcasting arm. Meanwhile, creator-driven content teams will be organized under a new unit named “creator services” within Boom’s leadership.

Boom emphasized that the restructuring is designed to position Amazon’s audio offerings for future growth and to “deliver the very best experience to creators, customers, and advertisers.” However, he acknowledged that the changes necessitated role reductions, with affected employees notified earlier this week.

Background: Amazon’s Investment in Original Audio

Amazon acquired Wondery in late 2020 for a reported $300 million, marking a decisive push into the podcasting and original audio space. Wondery built a strong reputation through popular narrative podcasts such as “Dirty John” and “Dr. Death.”

More recently, Wondery secured lucrative licensing deals for notable podcasts including Jason and Travis Kelce’s “New Heights” and Dax Shepard’s “Armchair Expert,” reinforcing its position in premium original audio content.

Navigating an Evolving Podcast Market

Amazon’s reorganization reflects the rapidly shifting podcast landscape, particularly the rising influence of video podcasts hosted on platforms like YouTube, owned by Alphabet. These formats demand distinct strategies for content discovery, audience growth, and monetization compared to traditional “audio-first, narrative series,” Boom noted.

The new structure aims to optimize Amazon’s ability to compete in this dynamic environment by leveraging the strengths of both Audible’s established platform and a more agile creator-focused unit.

Industry Context and Challenges

Podcasting revenue has been growing steadily, with the U.S. podcast ad market expected to surpass $3 billion in 2025, according to IAB/PwC. However, competition is fierce, with tech giants like Spotify, Apple, and YouTube aggressively expanding their audio and video podcast offerings.

Amazon’s strategic pivot highlights the challenges of maintaining growth and market share amid changing consumer preferences and new monetization models.

What’s Next for Wondery and Amazon Audio?

• Integration under Audible promises tighter synergy with Amazon’s audiobook business and enhanced content delivery
• The “creator services” unit will focus on empowering influencer- and personality-driven shows, a segment growing in popularity
• Continued investment in licensing and original content will remain critical as Amazon seeks to bolster its presence against rivals

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