Amazon to lay off employees amid strategy shift: Report

Tech layoffs continue to unsettle Silicon Valley, and Amazon is the latest to announce job cuts. As per a Bloomberg report, the e-commerce and cloud giant plans to lay off around 110 employees as it restructures Wondery, its podcast production arm. In a major leadership shake-up, Wondery CEO Jen Sargent is also stepping down.

This move marks a major shift in Amazon's audio strategy, as the company looks to lean heavily into video-centric podcasting, aiming to compete more aggressively with platforms like Spotify and YouTube.

Wondery to be folded into audible

Under the new structure, Amazon intends to combine Wondery’s storytelling and subscription teams with Audible, its audiobook and spoken-word platform. Marshall Lewy, Wondery's Chief Content Officer, will take up a new role within Audible, though details of his responsibilities are still emerging.

Meanwhile, Wondery's popular personality-led shows, such as Dax Shepard’s podcast and the Kelce brothers' program, will be moved to a newly established creator services division. This unit will focus on brand partnerships and sponsorship-driven content across Amazon’s ecosystem.

Though Wondery will retain its brand identity for select projects, most of its operations will now fall under the purview of Amazon Music and Audible. The Wondery+ app will remain available for the time being, but advertising and sponsorship sales will be absorbed into Amazon’s broader audio sales teams.

Amazon eyes video-first podcasting future

In a memo to staff, Steve Boom, Amazon’s Vice President of Audio, acknowledged the changing landscape of podcasting, noting that video has become an essential part of the medium. He emphasised that the restructure aims to deliver improved experiences for listeners, advertisers, and creators alike.

Amazon acquired Wondery in 2020 for around $300 million, allowing it to operate independently since then. However, with podcast consumption continuing to rise—studies estimate over 158 million Americans now listen to podcasts monthly—Amazon is clearly repositioning itself to better tap into the evolving market.