In a significant move reflecting the evolving dynamics of the podcasting industry, Amazon has announced the closure of its Wondery podcast studio, resulting in the elimination of approximately 110 positions. This decision is part of a broader strategic reorganization within Amazon’s audio division, aiming to adapt to the shifting landscape where video content increasingly intersects with traditional audio formats.
Background on Wondery
Founded in 2016 by Hernan Lopez, a former executive at Fox International Channels, Wondery quickly established itself as a prominent player in the podcasting arena. The company gained acclaim for producing compelling narrative-driven series such as Dr. Death and Business Wars. In December 2020, Amazon acquired Wondery for a reported $300 million, integrating it into its Amazon Music division to bolster its presence in the burgeoning podcast market.
Details of the Closure
The decision to shut down Wondery’s operations was communicated through an internal memo by Steve Boom, Amazon’s Vice President overseeing audio, Twitch, and games. Boom highlighted the rapid evolution of the podcasting landscape, noting that the rise of video content has blurred the traditional boundaries of podcast creation. This shift necessitated a reevaluation of Amazon’s strategy to remain competitive in a market increasingly dominated by multimedia platforms.
As part of the restructuring, existing Wondery content will be redistributed across different Amazon divisions. Narrative-driven series like Dr. Death are set to be integrated into Audible, Amazon’s audiobook and spoken-word entertainment service. Additionally, personality-driven shows, including the popular podcast hosted by NFL brothers Jason and Travis Kelce, will transition to a newly formed creator services team. This team is designed to enhance collaboration with high-profile talent and streamline content production and distribution.
Implications for Employees and Leadership
The closure impacts approximately 110 employees, representing a significant reduction in Wondery’s workforce. Notably, Wondery CEO Jen Sargent will depart from the company as part of this reorganization. Marshall Lewy, Wondery’s Chief Content Officer, is expected to assume a new role within Audible, ensuring continuity for the studio’s acclaimed narrative content.
Contextualizing the Decision
This move underscores Amazon’s ongoing efforts to refine its audio content strategy amid a rapidly changing media environment. Despite substantial investments in podcasting, including high-profile acquisitions and exclusive content deals, Amazon has faced challenges in achieving its desired market position. The integration of Wondery’s assets into Audible and the establishment of the creator services team reflect a strategic pivot aimed at leveraging synergies across Amazon’s audio and entertainment platforms.
The broader industry trend indicates a convergence of audio and video content, with platforms like Spotify and YouTube expanding their offerings to include video podcasts. Amazon’s restructuring efforts signal its intent to adapt to these trends by fostering a more integrated and versatile content ecosystem.
Historical Context and Previous Layoffs
This is not the first instance of Amazon streamlining its podcasting operations. In February 2025, the company reduced its Wondery workforce, affecting both content and advertising teams. These earlier layoffs were part of a broader initiative by Amazon CEO Andy Jassy to enhance operational efficiency across various business units. The recent closure of Wondery’s studio and the associated layoffs represent a continuation of this strategic realignment.
Industry Implications
Amazon’s decision to shut down Wondery’s studio and restructure its audio division reflects broader industry challenges and shifts. As consumer preferences evolve and the lines between audio and video content continue to blur, companies are compelled to reassess their content strategies. Amazon’s move may prompt other industry players to evaluate their positions and adapt to the changing media consumption landscape.
Conclusion
The closure of Wondery’s podcast studio and the subsequent layoffs mark a significant moment in Amazon’s audio content journey. By integrating Wondery’s assets into Audible and forming a dedicated creator services team, Amazon aims to position itself more competitively in a rapidly evolving market. This strategic shift underscores the company’s commitment to adapting to industry trends and meeting the changing preferences of its audience.
