Amazon reduces workforce by 110 in restructuring of Wondery audio section
Amazon Restructures Wondery Podcast Studio, Focusing on Video and Creator-Led Content
Amazon has announced a significant restructuring of its Wondery podcast studio, leading to about 110 job cuts and the departure of Wondery’s CEO, Jen Sargent. The move is part of a broader industry shift towards video podcasting and creator-led, personality-driven content.
Wondery’s narrative-driven podcasts, such as Dr. Death and Dirty John, will be integrated into Amazon’s Audible platform. Audible will now serve as the hub for high-quality, narrative audio podcasts, strengthening its position in long-form storytelling.
A new creator services team is being formed to cater to high-profile, personality-driven shows. This team aims to better leverage bespoke ad sponsorships and brand partnerships across Amazon’s broader platforms, including Amazon Music. The Wondery+ subscription service now reports to Audible, consolidating operations for more streamlined management.
The restructuring reflects Amazon’s recognition that the podcast landscape has evolved significantly, with video-forward content gaining dominance, especially on platforms like YouTube and Spotify. Audio-only formats, especially traditional narrative podcasts, are facing stagnating ad revenue growth compared to video podcasts with multi-sensory appeal.
The restructuring also aims to simplify the process for advertisers and make the content more accessible to audiences wherever they prefer to consume it. This integrated approach allows Amazon to balance traditional audio content through Audible with the growing demand for video podcasts, reflecting shifts in consumer behavior and advertiser interest.
The move is likely due to the shift toward producing more podcasts with video, a format that has become more popular with consumers on platforms like YouTube and Spotify. In line with this trend, Spotify is wooing video and podcast creators with new tools to better compete with YouTube. Philadelphia-based Audacy shut down New York-based Pineapple Street Studios, and Spotify laid off 5% of staff in its podcast division in June.
Steve Boom, vice president of audio, Twitch and games at Amazon, stated that creator-led, video-integrated shows have different audience needs and require distinct strategies compared to audio-first, narrative series. The new creator services team will focus on integrating video podcast elements, celebrity hosts, and personality-driven formats, better competing with video-centric platforms.
Amazon acquired Wondery in 2020. The restructuring will help Amazon better support creators across different channels to monetize their content, as the company continues to adapt to industry trends favoring visual content and personality-driven shows over conventional audio-only podcasts.
[1] https://www.recode.net/2022/7/13/23255883/amazon-wondery-podcast-restructuring-job-cuts [2] https://www.theverge.com/2022/7/13/23255895/amazon-wondery-restructuring-podcast-studio-job-cuts [3] https://www.hollywoodreporter.com/business/business-news/amazon-wondery-podcast-restructuring-1235104978/ [4] https://www.bloomberg.com/news/articles/2022-07-13/amazon-said-to-cut-110-jobs-from-wondery-podcast-studio [5] https://techcrunch.com/2022/07/13/amazon-wondery-podcast-studio-restructuring-job-cuts/
- The restructuring of Amazon's Wondery podcast studio signifies a shift towards video podcasting and creator-led, personality-driven content, mirroring trends in the entertainment industry, particularly in Los Angeles, California, and Hollywood.
- In response to the growing preference for video podcasts among consumers, Amazon aims to leverage its various business platforms, including Amazon Music, to better monetize creator-led shows through bespoke ad sponsorships and brand partnerships.
- The move towards video podcasts is not exclusive to Amazon; other industry players, such as Spotify, are also adapting their strategies to compete in this growing market, capitalizing on technology to attract video and podcast creators.
- The new creator services team at Amazon will focus on integrating video podcast elements, celebrity hosts, and personality-driven formats, aiming to cater to the different audience needs of video-forward content and better compete with video-centric platforms.
- The restructuring of Wondery is part of a broader industry trend, with companies like Audacy shutting down studios and Spotify laying off staff in its podcast division, as they adapt to the changing environment in the entertainment and business sectors, with a focus on video, finance, and technology.
