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To address the lackluster success of its podcast business, Amazon (NASDAQ:AMZN) is shutting down its Wondery studio and incorporating the remaining pieces of the business into its Audible unit in a push to compete with more successful platforms like Spotify (SPOT) and YouTube (GOOG), according to a memo viewed by Bloomberg.
The reorganization will result in the loss of 110 Wondery jobs, including CEO Jen Sargent.
“The podcast landscape has evolved significantly over the past few years,” Steve Boom, vice president of audio, Twitch and games, wrote in the memo. “The rise of video has also blurred the lines on what it means to be a podcast creator.”
According to an unnamed source cited by Bloomberg, Wondery’s advertising and sponsorship units will form a new team responsible for similar deals at Amazon Music, and the Wondery+ app will continue to exist for the “foreseeable future.”
Since its acquisition by Amazon (NASDAQ:AMZN) in 2020, Wondery has operated independently of its parent company with its own subscription app. The service signed names like LeBron James, Jason and Travis Kelce, Monica Lewinsky, and Keke Palmer, and broadcast popular podcasts including Morbid (recently moved to Sirius XM), Dr. Death, and American Scandal. These programs will either be absorbed by Amazon’s (NASDAQ:AMZN) Audible banner or the “creator services” team.
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