Audible CEO Bob Carrigan has announced that the company is reducing its workforce by approximately 5%, which equates to around 100 employees, according to a recent staff memo in early January. This decision comes despite Audible experiencing a strong performance in 2023. Carrigan stressed that the business “is in good shape,” but highlighted the necessity of these cuts to ensure the sustained success of Audible amid an evolving industry landscape.

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Carrigan explained, “to position us for continued success in the coming year and into the future, given the increasingly challenging landscape we face […] getting leaner and more efficient is the way we will need to operate now—and in the foreseeable future.” He further emphasised the company’s commitment to delivering “best-in-class audio storytelling to our customers around the world.”

This workforce reduction is unfolding against a backdrop of continued growth in digital audiobook sales. However, 2024 presents a new set of challenges and uncertainties for the industry and Audible. One significant factor is Spotify’s entry into the digital audiobook space last year, marking the first substantial competition Audible has faced in this market.

Read: Spotify audiobooks: a challenge to the publishing world

Additionally, advancements in AI technology are presenting both challenges and opportunities in the realm of audiobook production and sales. In November, Kindle Direct Publishing (KDP), an Amazon self-publishing subsidiary, announced the start of a beta test for technology enabling authors to produce audiobooks with virtual voice narration. These audiobooks will be sold through Audible. The introduction of synthetic speech technology is anticipated to increase the volume of audiobooks produced by KDP authors, as currently only 4% of KDP self-published titles have accompanying audiobooks. An independent study reiterated that numerous synthetic voice-narrated audiobooks have rapidly appeared on Audible’s platform.

The layoffs at Audible are part of a broader trend within Amazon’s various divisions. Reports from Fast Company indicate that Amazon’s Prime Video and MGM Studios units are also undergoing payroll reductions. Twitch, another Amazon-owned entity, has likewise eliminated jobs, signalling a company-wide strategy to streamline operations in response to the shifting digital landscape.