Audible, the audiobook company owned by Amazon, is set to lay off 5% of its workforce, as revealed in a leaked memo obtained by Business Insider. In the memo, Audible CEO Bob Carrigan acknowledged the company’s strong performance in 2023 but cited the “increasingly challenging landscape” as the reason for the cuts. This trend of layoffs is not unique to Audible, as many tech companies have been facing ongoing layoffs since 2022.
Despite requests for comment, Audible has not responded to inquiries regarding the layoffs. Amazon, Audible’s parent company, has been aggressively reducing its workforce over the past year. In 2023 alone, Amazon laid off around 27,000 employees across various departments, including AWS, Twitch, and advertising. Just this week, Twitch, which was acquired by Amazon for $1 billion in 2014, let go of 500 employees. Additionally, Amazon’s MGM Studios and Prime Video recently laid off several hundred employees, signaling a challenging period for the company’s entertainment products.
It is worth noting that all of these organizations, including Twitch, MGM Studios, and Audible, were acquired by Amazon. Most notably, Amazon acquired MGM for $8.5 billion in 2022, expanding its Prime Video streaming service with thousands of films and TV shows. Despite Twitch’s popularity, the costs associated with operating a large livestreaming platform have prevented it from becoming profitable. As for MGM and Prime Video, the division is making strategic cuts to certain areas while increasing investments in content and product initiatives that have the greatest impact.
While these layoffs may be concerning, it is important to remember that the tech industry is known for its dynamic nature and constant evolution. Companies like Audible and Amazon are continuously adapting to meet the challenges of an ever-changing landscape.