Amazon has announced a major restructuring of Wondery, its podcast production subsidiary, laying off 110 employees, including CEO Jen Sargent, as part of an operational overhaul aimed at aligning its audio content strategy with the growing dominance of video-integrated podcasting.
Wondery, acquired by Amazon in late 2020 for $300 million, is known for hit narrative podcasts and currently publishes over 360 shows. It will now be merged into Audible, Amazon’s audiobook and spoken word division. The move comes amid shifting listener preferences and a reassessment of long-term monetization models in the saturated audio streaming market.
“The podcast landscape has evolved significantly… video-integrated shows have different audience needs and require distinct discovery, growth, and monetization strategies compared to audio-first, narrative series,” said Steve Boom, Amazon’s VP of Audio, in an internal memo cited by Business Insider.
Restructuring Highlights:
- Wondery’s narrative podcast studio to be folded into Audible
- Creator-led shows (including Armchair Expert and New Heights) will merge into a new Creator Services division
- Ads and sponsorships will be integrated into the existing Amazon Music ad team
- Marshall Lewy, Wondery’s Chief Content Officer, will join Audible in a key content role
The memo also noted that podcast-related revenue has quadrupled since the acquisition of Wondery, despite recent market headwinds and stiff competition from Spotify, YouTube, and Apple.
Strategic Repositioning Amid Podcast Saturation
Amazon’s realignment reflects broader struggles across the podcasting industry, especially for platforms pursuing premium audio content without scalable discovery or cross-platform engagement. While Amazon Music holds 13% of the U.S. music streaming market, its podcast division accounts for only 1.6% of total U.S. podcast downloads.
Amazon’s other podcast-related bets have also underperformed:
- ART19, a podcast hosting platform acquired in 2021, hosts just 3,900 shows, far behind rivals like Megaphone and Omny, each with over 20,000.
- The $80 million deal for SmartLess expired after three years without major impact.
- The $100 million investment into New Heights promised international audio versions and live events — neither of which materialised since Amazon’s acquisition.
Industry Response And Layoff Support
The Wondery layoffs follow other high-profile podcast job cuts at Pineapple Street Studios and public radio. In response, Podcast Movement is offering complimentary passes to displaced professionals for its upcoming conference in Dallas. Industry platform Podnews has also mobilised a free jobs board and support resources.
Analysts say Amazon’s latest restructuring reflects a broader pivot across tech and streaming companies as video-led podcasts and creator-centric content become dominant formats. Platforms with under-leveraged ecosystems or fragmented distribution have struggled to capture audience scale or ad dollars.
