Amazon on Monday said it is cutting 110 roles from its audio division Wondery as part of a restructuring effort.
The cuts reflect an industry shift toward producing more podcasts with video, a format that has become more popular with consumers who listen to their favorite hosts on platforms including YouTube and Spotify.
The layoffs also mark the latest sign of contraction in the once-burgeoning podcast industry. In June, Spotify laid off 5% of staff in its podcast division and Philadelphia-based Audacy shut down New York-based Pineapple Street Studios.
“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 a memo to staff.
Under the changes, Amazon will combine Wondery’s narrative podcast studio with audio books and podcast division, Audible. Wondery staffers in its creator-led podcast studio will be part of a new organization called creator services with Amazon’s talent services group.
Amazon acquired Wondery in 2020 for an undisclosed amount. The Culver City-based company is known for producing podcast series including “Dr. Death,” “American Scandal” and “The Shrink Next Door.”
Amazon said the restructuring will help it better support creators across different channels to monetize their content and simplify the process for advertisers, while also “making the content more accessible to audiences wherever they prefer to consume it.”
Wondery Chief Executive Jen Sargent is leaving the company to pursue other opportunities, Amazon said.
Ray Wang, principal analyst of Constellation Research, said the reorganization will help the company grow its ad business.
“This makes a lot of sense given how advertisers view both formats,” Wang said.
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