Amazon reportedly overhauls Wondery Podcast Studio, cuts 110 jobs including CEO Jen Sargent in major shake-up

Following its acquisition of Wondery Podcast Studio in 2021, Amazon is reportedly set to restructure the company, potentially resulting in the loss of 110 jobs, including that of CEO Jen Sargent, who has led the podcast studios for four years.

Amazon is moving its narrative podcast studio, which makes shows like Business Wars, Dr. Death, and American Scandal, as well as the Wondery+ subscription service, to Audible. Wondery's chief content officer, Marshall Lewy, will join the Audible content team, according to a memo from Steve Boom, Amazon’s VP of audio, Twitch, and games (as reported by Reuters).

Meanwhile, a newly formed team will oversee creator-driven podcasts under the Wondery brand, continuing to produce shows like Mind the Game, New Heights, and Armchair Expert.

This team, part of the Creator Services group within Amazon's Talent Services division, will be "working with a select number of top creators to drive scaled listenership and unlock broader and long-lasting relationships across Amazon."

"As a result of all these changes, Jen Sargent will be moving on to pursue new opportunities but will be helping us through this transition," the memo states.

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Why is Wondery Podcast Studio undergoing reorganization?

In a statement shared by several outlets, Amazon acknowledged that the podcast industry has recently seen significant changes, particularly with the rise of video-forward, creator-led content. The changes Amazon is making to Wondery Podcast Studio are meant to reflect these industry shifts to support creators in "monetizing their content across multiple channels, help them expand their brand IP."

In addition to benefiting creators, this change will also help advertisers while making content more accessible to audiences "wherever they prefer to consume it."

"This evolution builds on Wondery’s early success with video-forward shows and positions us to better serve creators, customers, and advertisers."

Meanwhile, in the memo, Steve Boom also addressed the Wondery Podcast Studio reorganization, writing:

"These changes will not only better align our teams as they work to take advantage of the strategic opportunities ahead but, even more crucially, will ensure we have the right structure in place to deliver the very best experience to creators, customers and advertisers."

Amazon is creating a new team, led by Angie More, to handle sponsorship ads for Wondery Podcast Studio and Amazon Music. The goal is to simplify ad efforts and make it easier to work with Amazon’s shows and creators. Amy Grabisch and her team, who focus on monetizing Amazon Music’s live content, will also join this group, according to Bloomberg News.

In response to the news, eMarketer analyst Grace Harmon told Reuters on August 4:

"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. Folding Wondery assets into Audible and focusing on 'creator services' could drive a pivot toward influencer-driven content that's easier to monetize."

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According to the memo, when Amazon acquired Wondery Podcast Studio in late 2020 for around $300 million, its podcast revenue increased fourfold, particularly after Wondery expanded its content by adding video podcasts and more creator-driven series.