Amazon has laid off over 110 employees from its podcast studio Wondery as part of a strategic shift towards video content, reflecting the evolving nature of podcasts in 2025.

Acquired by Amazon in 2020 for approximately $300 million, Wondery aimed to enhance Audible's advertising ecosystem, but this strategy has struggled amid a rapidly changing media landscape.

The restructuring will emphasize creator-led content, focusing on the rising popularity of video and personality-driven shows, while maintaining the branding of popular podcasts like American Scandal and Business Wars.

This reorganization aims to enhance monetization opportunities for creators, simplify advertiser engagement, and provide better support across Amazon's platforms, including Amazon Music and Audible.

A new division called Creator Services will be established to focus on creator-led and video-focused shows, including celebrity-hosted podcasts like New Heights with Jason and Travis Kelce.

Steve Boom, VP of Audio, emphasized that separating the teams overseeing different types of podcasts will better serve customer and creator needs.

The podcast industry is at an inflection point, shifting towards a more creator-centric ecosystem that values authenticity and direct audience engagement over sheer scale.

Despite attracting high-profile podcasts, Wondery faces stiff competition from platforms like Spotify and YouTube, which have made significant investments in exclusive content.

Video podcasts now account for over 40% of U.S. podcast listening, with platforms like YouTube dominating discovery, disrupting traditional audio-centric companies.

Affected employees were notified of their layoffs, but many may be reassigned within Amazon, and the company is providing support such as severance pay and counseling.

The Wondery+ subscription service will transition to Audible, with more details expected later in 2025.

Podcast advertising revenue is projected to reach $2.5 billion in 2025, highlighting the industry's growth potential despite the challenges faced by content creators.