Amazon (AMZN) is shutting down its Wondery podcast studio and laying off 110 employees as part of a reorganization of its audio division.
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In an internal memo to staff, Steve Boom, Amazon’s vice president of audio, said the company is consolidating some Wondery units under its Audible audiobook and podcasting unit, and that Wondery’s current CEO Jen Sargent is leaving her role.
“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,” reads the memo.
Audio Ambitions
The shutdown of Wondery comes nearly five years after Amazon acquired the podcast studio as part of a plan to expand its catalog of original audio content. The podcasting company made a name for itself with hit shows like “Dirty John” and “Dr. Death.” More recently, Wondery signed licensing deals with Jason and Travis Kelce’s “New Heights” podcast, along with Dax Shepard’s “Armchair Expert.”
In the reorg, Amazon’s podcasting unit will consolidate under Audible, and creator-led content will move to a new unit called “creator services.” Amazon’s audio ambitions face challenges from the growing popularity of video podcasts on rival Alphabet’s (GOOGL) YouTube channel, which now hosts an increasing number of shows and programs.
Is AMZN Stock a Buy?
AMZN stock has a consensus Strong Buy rating among 45 Wall Street analysts. That rating is based on 44 Buy and one Hold recommendations assigned in the last three months. The average AMZN price target of $265.05 implies 23.42% upside from current levels.
