Amazon's Audible Braces For 'Storms Ahead': CEO Addresses Layoffs, Rising Spotify Competition

In an internal all-hands meeting held on Wednesday, Audible, an Amazon.com Inc AMZN unit, discussed potential future layoffs and the increasing competition from Spotify. This meeting reportedly comes two weeks after Audible reduced its workforce by 5%.

What Happened: Audible CEO Bob Carrigan addressed numerous employee concerns, primarily regarding recent layoffs and low staff morale. While Carrigan did not directly confirm the possibility of future layoffs, he did not rule them out either, as reported by Business Insider.

Carrigan also acknowledged the growing threat from Spotify Technology SA SPOT, which recently launched free audiobooks for premium subscribers. He stressed the need for Audible to remain “customer focused, competitor aware,” in light of Spotify’s significant customer base and its foray into Audible’s core market.

Despite the layoffs, Carrigan assured employees that there is no hiring freeze at Audible. He also highlighted the potential of artificial intelligence (AI) to create more opportunities in the long term, despite possible short-term disruption.

An Audible spokesperson confirmed the meeting and its main discussion points to Business Insider, emphasizing that Audible remains well-positioned for future growth and continued innovation.

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Why It Matters: These layoffs come at a time when the tech industry is facing increasing competition and changing market dynamics. Spotify’s move into the audiobook market, for instance, poses a significant threat to Audible’s core business. The tech industry’s growing focus on AI also suggests potential disruptions and job losses in the short term, even as it promises new opportunities in the long term.

The recent layoffs at Audible are not an isolated incident. Amazon’s other units, including Twitch and Amazon Music, have also faced significant job cuts. This trend is not limited to Amazon; other tech giants like Google and Microsoft have also announced layoffs recently.

Price Action: On Thursday, Amazon.com shares rose 0.6% in the regular session to $157.75 and declined 0.2% in the after-hours trading, according to Benzinga Pro data.

Photo via Amazon Audible

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