Amazon-Backed Audible Sheds 5% of Its Workforce

Audible, the popular audiobook and podcast service owned by Amazon, has announced that it will be shedding approximately 5% of its workforce. This news comes as the third instance of job cuts at Amazon businesses this week, reflecting a broader trend within the technology industry that’s attempting to adapt to the uncertainties of the new year.

Audible’s CEO, Bob Carrigan, sent out a company-wide memo on Thursday. He stated that despite the company’s strong standing, it’s facing a tough business climate. “We did not take this route without considerable thought,” Carrigan explained in the memo. “But getting leaner and more efficient is the way we will need to operate now — and in the foreseeable future — in order to continue delivering best-in-class audio storytelling to our customers around the world.”

The actual number of employees affected by this decision remains undisclosed.

These job cuts follow similar decisions made by Amazon’s other enterprises. This includes Amazon’s Prime Video and MGM Studios unit, which had to cut back on scores of employees to trim costs in areas that weren’t delivering satisfactory results. Amazon’s popular live-streaming branch Twitch also announced that it is shedding over 500 roles as part of a move to cut costs and boost profitability.

Audible, after being acquired by Amazon in 2008 for a cool $300 million, has become a prominent distributor and producer of audiobooks, podcasts, and meditation programs. To attract more customers, the service has even engaged in exclusive content deals and notable partnerships, such as a multi-year agreement with Higher Ground Productions, a company founded by Barack and Michelle Obama.

While many tech firms, including Amazon, accelerated hiring during the pandemic, a shift toward cost-cutting has been noticed due to rising inflation and interest rates, with the focus now turning toward profitability. Amazon’s recent workforce reduction is part of a larger trend that began in late 2022, affecting over 27,000 employees.

In a similar move, Discord, a social media firm, confirmed staff cuts of 17% as a strategic move to bring more fluidity into its workforce post a pandemic-induced hiring surge.

The tech industry has seen a wave of layoffs in general, with companies like Google, Unity Software, and Xerox announcing job cuts as well.