After laying off several employees in its AWS division, Amazon is once again undergoing a major restructuring – this time it is limited to its audio business. The fresh set of layoffs is expected to see approximately 110 employees within its Wondery podcast division. The restructuring, which was announced in an internal memo by Steve Boom, Amazon’s VP of Audio, Twitch, and Games, is part of a broader strategy to streamline operations and adapt to a rapidly shifting podcast landscape.
What happens to retained employees?
As part of the shake-up, Wondery’s narrative podcast teams, known for popular shows like “Dr. Death” and “Dirty John,” will be merged with Audible, Amazon’s audiobook and podcast service. Meanwhile, the division’s creator-led content, which includes high-profile hits like “New Heights” with Jason and Travis Kelce, will transition to a new division named “Creator Services.”
This new unit will focus specifically on growing and monetising creator-driven shows. The news, which was first reported by Bloomberg, also confirmed that Wondery CEO Jen Sargent is stepping down.
In his memo, Boom stated that these changes are designed to position Amazon better to capitalise on new strategic opportunities and improve the experience for creators, customers, and advertisers. The layoffs, however, represent an unfortunate consequence of this restructuring, with affected employees having already been notified.
Restructuring part of a broader effort to compete with YouTube
The restructuring marks a turning point for Amazon’s audio division, which acquired Wondery in 2020 to expand its original audio content. The move showcases the dramatic shift in the podcast industry, where YouTube’s video-first model has become a dominant force. The different requirements for discovery, growth, and monetisation between narrative series and creator-led shows—especially as video becomes more prominent—have necessitated this strategic separation.
By organising its storytelling and creator-led initiatives into distinct units, Amazon aims to adapt to this changing landscape, even as it faces fresh challenges in competing with YouTube’s video-centric approach.
