Audible, an Amazon.Com Inc AMZN division specializing in audiobooks and podcasts, is reducing its workforce by approximately 5% as part of a broader effort to streamline operations and maintain its leadership in audio storytelling.
This move was communicated by Audible CEO Bob Carrigan in a memo to employees, emphasizing the decision’s difficulty but underscoring its necessity for future success.
These layoffs are part of Amazon’s most extensive downsizing effort, which began in late 2022 and continued through 2023, affecting over 27,000 positions across the company, CNBC reports.
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Carrigan highlighted in his memo that reducing staff was not taken lightly and is aligned with the company’s commitment to efficiency and long-term strategic planning.
He recognized the contributions of all employees, assuring that those leaving would receive support in finding new opportunities.
This development is part of a trend within Amazon to adapt to an increasingly challenging business landscape.
Despite the cuts, Carrigan remains optimistic about Audible’s future, citing its strong performance in 2023 and its potential for sustained growth in the global market.
He plans to discuss the company’s future direction and address employee concerns in the upcoming Global Allofus meeting.
Audible, acquired by Amazon in 2008 for approximately $300 million, has mainly operated independently but is not immune to the broader organizational changes within its parent company.
Reducing its workforce reflects a strategic adjustment to remain competitive and innovative in the audio content industry.
The layoffs at Audible come amid larger-scale job cuts across Amazon, including significant reductions in its Prime Video, MGM Studios, and Twitch divisions.
Recent reports this week indicated Amazon eying significant layoffs affecting several hundred employees at Prime Video and Amazon MGM Studios.
Mike Hopkins, head of Amazon’s entertainment division, communicated these layoffs via email, acknowledging the difficulty of the decision as part of a strategic shift to prioritize investments and concentrate on exclusive content and impactful product initiatives.
The company supports those impacted, including severance packages, transitional benefits, and job placement aid.
Amazon’s Twitch, a leading live streaming service, is reportedly preparing to cut its workforce by 35%, impacting around 500 employees.
This move follows a period marked by the exit of several top executives and persistent financial challenges at Twitch.
Despite being part of Amazon’s extensive network, Twitch’s operations, which handle 1.8 billion hours of live video content monthly, pose significant financial strains.
2023 has been a dynamic year for Amazon, marked by significant developments, including leveraging artificial intelligence for logistics and delivery enhancements, revamping its grocery sector, advancing its AI chip technology to bolster Amazon Prime services, escalating competition with Walmart Inc WMT, implementing workforce reductions, among other notable activities.
Amazon stock gained 63% last year versus the broader index SPDR S&P 500 (SPY), which gained 20%.
Price Action: AMZN shares traded lower by 0.62% at $152.43 premarket on the last check Friday.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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