Amazon has denied reports that it is shutting down its Wondery podcast studio, which it acquired in 2020 for approximately $300 million. Instead, the company is undergoing a significant reorganization of its audio division, resulting in the layoff of about 110 employees.
The restructuring involves splitting Wondery’s operations into two main segments:
Narrative Podcasts: Wondery’s narrative-driven content, including popular shows like Dr. Death, American Scandal, and Business Wars, will be integrated into Amazon’s Audible division. The Wondery+ subscription service will also move under Audible’s management, with Wondery’s Chief Content Officer, Marshall Lewy, transitioning to a new role within Audible.
Creator-Led Shows: Personality-driven podcasts, such as New Heights (hosted by Jason and Travis Kelce) and Armchair Expert (hosted by Dax Shepard), will be managed by a newly formed “Creator Services” team within Amazon’s Talent Services division. This team will focus on video-forward, creator-led content and aim to enhance monetization through sponsorships and integrations across Amazon’s platform.
Wondery CEO Jen Sargent will depart the company as part of this restructuring, following a transition period.
Narrative Podcasts: Wondery’s narrative-driven content, including popular shows like Dr. Death, American Scandal, and Business Wars, will be integrated into Amazon’s Audible division. The Wondery+ subscription service will also move under Audible’s management, with Wondery’s Chief Content Officer, Marshall Lewy, transitioning to a new role within Audible.
Creator-Led Shows: Personality-driven podcasts, such as New Heights (hosted by Jason and Travis Kelce) and Armchair Expert (hosted by Dax Shepard), will be managed by a newly formed “Creator Services” team within Amazon’s Talent Services division. This team will focus on video-forward, creator-led content and aim to enhance monetization through sponsorships and integrations across Amazon’s platform.
Amazon’s Vice President of Audio, Twitch, and Games, Steve Boom, stated in an internal memo that the changes reflect the evolving podcast landscape, particularly the rise of video-integrated, creator-led content, which requires different strategies for audience engagement and monetization compared to traditional audio-first podcasts.
The reorganization is seen as a strategic pivot to better compete with platforms like Spotify and YouTube, which have embraced video podcasts and exclusive talent deals.
Despite the layoffs, Amazon emphasized that the Wondery brand will persist on some creator-led shows, and the Wondery+ app will continue to operate for the foreseeable future. The company aims to streamline operations, reduce redundancies, and align resources to capitalize on the growing popularity of video podcasts and integrated audio-video experiences.
Public sentiment on platforms like X has been mixed, with some users expressing frustration over the layoffs, describing them as part of broader tech industry trends of indirect staff reductions. Industry analysts note that while the move may strengthen Audible’s narrative audio offerings, it could risk diluting Wondery’s independent creative identity. The podcast market, valued at over $2 billion in ad revenue last year, faces challenges from economic uncertainty and a shift toward visual media, prompting Amazon to adapt its strategy.