Amazon is shutting down most of its Wondery podcast studio and splitting the operation between its Audible division and a newly formed “Creator Services” unit, the company said in an internal memo seen by several media outlets on Monday. Narrative shows such as “Dr. Death” and “Business Wars” will move under Audible, while personality-driven programs including the Kelce brothers’ “New Heights” will be managed by the Creator Services team. The reorganization will eliminate roughly 110 positions, and Wondery Chief Executive Officer Jen Sargent will depart after helping with the transition. Some affected staff will be offered roles elsewhere at Amazon, but the company did not specify how many. Vice President Steve Boom wrote that “the podcast landscape has evolved significantly… particularly with the rise of video-forward, creator-led content,” necessitating a structure better aligned with advertisers and audience preferences. The shake-up also consolidates sponsorship sales for Wondery and Amazon Music under a single group. Amazon paid about $300 million for Wondery in 2021, betting that the studio’s award-winning narrative productions would bolster its push into audio entertainment. The latest retrenchment underscores the growing challenge of competing with Spotify and YouTube as video and celebrity-anchored podcasts capture a larger share of listening and advertising revenue.
Amazon is breaking up Wondery as podcasts shift to video. Read the memo explaining the changes. https://t.co/hXiUzNwUtj
Four and a half years ago, Amazon paid about $300 million for Wondery. Now it is firing most of the podcast company's staff and dividing what's left between its two other audio businesses. @ashleyrcarman https://t.co/AgLPsPN1ph
Wow Amazon shuts down Wondery podcast studio it paid like $300M for in 2020...