Amazon is shutting down the Wondery podcast studio and laying off approximately 110 employees, according to multiple reports, including Bloomberg and TechCrunch. The move comes as part of a broader reorganization of Amazon’s audio content strategy.

The Wondery studio, acquired by Amazon in 2020 to bolster its podcast ambitions, had been producing original audio content, including scripted series. Under the reported changes, content production from Wondery will be folded into Audible, Amazon’s audiobook and podcast division, and a newly formed creator services team. This new unit is expected to support talent-led projects like the “New Heights” podcast hosted by NFL’s Kelce brothers.

Bloomberg reports that Wondery CEO Jen Sargent is expected to depart as part of the restructuring. Amazon has not released a formal public statement, but internal sources cited by Bloomberg suggest the changes are aimed at streamlining operations and focusing resources on scalable, creator-driven audio formats.

This is the second time in 2025 that Amazon has cut podcast-related roles. In February, Reuters reported a smaller round of layoffs within Wondery tied to an internal review.

INSIDER TAKE

Amazon’s decision to dismantle Wondery’s studio points to a deeper strategic pivot that subscription executives should not overlook. While Amazon has not issued a public comment, the reported shift away from in-house podcast production toward a platform-plus-talent model is a telling signal of where the company sees higher ROI.

This move aligns with broader trends:

✔️ Platform Consolidation: Folding Wondery into Audible suggests Amazon is doubling down on its subscription-native platform rather than supporting parallel audio units.

✔️ Shift Toward Scalable, Talent-Led Content: Creator-led formats are often cheaper to produce and more adaptable across platforms. By focusing on personality-driven shows, Amazon may be following Spotify’s playbook while reducing fixed production costs.

✔️ Revenue Model Reevaluation: As ad-supported podcasts face monetization pressure and operational complexity, Amazon appears to be streamlining its audio strategy to support premium or bundled subscription products—such as Audible membership.

✔️ Cautionary Note for Acquisitions: Wondery was a high-profile acquisition just four years ago. Its restructuring illustrates the risk of overestimating the long-term performance of branded content arms, particularly when market conditions or audience behaviors shift.

For subscription businesses investing in content, the lesson is clear: content strategy must evolve in lockstep with platform economics and consumer engagement trends.