Amazon reducing Wondery's workforce as it reassesses its podcasting sector strategy.
Amazon has announced a significant restructuring of its podcast business, breaking up its Wondery studio and laying off about 110 employees, including the CEO. This move reflects a shift in podcast consumption towards video-forward and personality-driven content, with a focus on creator-led shows.
Breaking Up Wondery
Wondery, an independent narrative podcast studio, will no longer operate under its current structure. The change is in response to the growing trend of video-focused and personality-driven content, which is increasingly popular on platforms like YouTube.
Layoffs and Transitions
Some of the laid-off employees will transition into Audible, Amazon's audiobook division, while others will join a new creator services team under Amazon's Talent Services division.
Focus on Creator-Led Shows
Narrative and storytelling podcasts will be moved to Audible, where the focus will be on audio-led storytelling. On the other hand, creator-led podcasts will be handled separately, with a focus on monetization and ad sponsorships.
Strategic Evolution
Amazon's official statement describes this as a strategic evolution in response to the rise of video-forward, creator-led podcasts and a desire to streamline operations for creators, advertisers, and audiences.
New Creator Services Team
A new Creator Services team under Amazon's Talent Services division will take over for Wondery's creator-led shows like Armchair Expert and New Heights. This team will work closely with a select group of top creators to expand their audiences and deepen their partnership with Amazon.
Impact on the Podcast Industry
The reorganization is a reflection of broader industry trends towards video podcasts and creator-driven content over traditional narrative formats. The rise of video podcasting has created "different audience needs" and requires "distinct discovery, growth, and monetization strategies" compared to traditional audio-only narrative podcasts.
Other Industry Developments
The Corporation for Public Broadcasting (CPB), which helps fund National Public Radio (NPR), is set to wind down operations and lay off most of its staff by September 30. This move comes as President Donald Trump has cut the nonprofit's funding. Spotify reportedly signed a $250 million deal to continue managing sponsorships for Joe Rogan's podcast. Radio giant Audacy, which shut down its podcast-focused Pineapple Street Studios in June, is another example of the industry's shifting landscape.
Notable Personalities Involved
Bloomberg highlighted LeBron James, who hosts the podcast Mind the Game and has served as a Prime Day spokesperson, as a blueprint for this new approach. Jen Sargent, the CEO of Wondery, is leaving the company, and Marshall Lewy, the chief content officer of Wondery, will also be headed to Audible.
[1] Amazon Announces Major Shift in Podcast Strategy, The Verge
[2] Amazon Moves Narrative Podcasts to Audible, Variety
- The restructuring of Amazon's podcast business involves breaking up Wondery, a move that respond to the growing trend of video-focused and personality-driven content, with a focus on creator-led shows, demonstrating the future shift in podcast consumption.
- The laid-off employees from Wondery will transition into different teams within Amazon, such as Audible and a new Creator Services team, reflecting Amazon's emphasis on strengthening its tech and business strategies in the future.
- With the rise of video-forward and creator-led podcasts, Amazon is focusing on monetization and ad sponsorhips for creator-led shows, showcasing their commitment to technology and finance in the ever-evolving world of business and technology.
