About 110 staff shall be laid off as a part of the method and lots of will transition to different elements of Amazon (NASDAQ:), the corporate mentioned in an emailed assertion on Monday.
Wondery CEO Jen Sargent will even depart the corporate following a transition interval, the memo mentioned.
Intense competitors, excessive prices and a rising choice for creator-led video content material have prompted audio streaming corporations together with Spotify (NYSE:) to diversify their podcasts to draw extra customers.
“As video podcasting has grown in popularity, we have learned that creator-led, video-integrated shows have different audience needs and require distinct discovery, growth and monetization strategies compared to audio-first, narrative series,” Steve Boom, vp of audio, Twitch and video games at Amazon, wrote within the memo.
Wondery was acquired by Amazon in 2021 and has seen podcast income quadruple since then because the studio expanded its slate to incorporate video podcasts and creator-driven sequence, in keeping with the memo.
“This isn’t just about layoffs – it’s the collapse of a podcast strategy that couldn’t keep pace with video-led rival platforms like YouTube and Spotify,” mentioned eMarketer analyst Grace Harmon.
Under the brand new construction, Wondery’s narrative podcast studio – residence to exhibits reminiscent of “Dr. Death” and “American Scandal” – together with the Wondery+ subscription service, will transfer to Audible, the e-commerce big’s audio platform.
Its creator-focused podcast workforce that produces exhibits together with “Mind the Game”, “New Heights”, and “Armchair Expert” will be part of a brand new Creator Services group inside Amazon’s Talent Services division.
This new workforce will proceed to function the creator-focused podcast studio beneath the Wondery model, and Amazon mentioned the modifications will assist higher assist creators to monetize their content material throughout a number of channels.
“Folding Wondery assets into Audible and focusing on ’creator services’ could drive a pivot toward influencer-driven content that’s easier to monetize,” eMarketer’s Harmon mentioned.
Bloomberg News first reported on the Wondery overhaul.
