According to a leaked memo obtained by Business Insider, Audible, the audiobook company under Amazon’s umbrella, is set to lay off 5% of its staff. In the leaked memo, CEO Bob Carrigan acknowledged the team’s efforts in achieving a strong 2023 performance and expressed confidence in the company’s standing. However, due to the “increasingly challenging landscape,” the company has made the decision to downsize its workforce. This move aligns with a broader trend in the tech industry, where companies have been grappling with layoffs since 2022.
Key Takeaway
Audible, an Amazon-owned audiobook company, is implementing staff layoffs amounting to 5% of its workforce, citing challenges in the current business environment.
Amazon’s Ongoing Workforce Reduction
Amazon, the parent company of Audible, has been actively reducing its workforce over the past year. In 2023, the e-commerce giant laid off approximately 27,000 employees across various divisions, including AWS, Twitch, and advertising. The recent wave of layoffs extends to Twitch, which parted ways with 500 employees, as well as Amazon’s MGM Studios and Prime Video, where “several hundred” employees were let go. This downsizing trend raises concerns about the future of Amazon’s entertainment ventures.
Acquisitions and Impact on Workforce
It’s worth noting that Amazon’s involvement in entertainment has been significantly shaped by acquisitions. The acquisition of MGM in 2022 for $8.5 billion bolstered the Prime Video streaming service with a vast library of content, comprising over 4,000 films and 17,000 TV shows. Similarly, Twitch, a prominent gaming-focused livestream platform, was acquired by Amazon in 2014 for approximately $1 billion. Audible, which has been under Amazon’s wing since 2008 following a $300 million acquisition, now faces the impact of the company’s strategic decisions.
Challenges in the Entertainment Sector
While Twitch enjoys substantial popularity, the operational costs associated with running a large live-streaming platform have posed profitability challenges. As for MGM Studios and Prime Video, the decision to downsize aligns with a strategic shift outlined by senior vice president Mike Hopkins, focusing on optimizing investments in content and product initiatives that yield the greatest impact while curtailing or discontinuing other areas of expenditure.
