In a recent internal communication on Wednesday, Amazon.com revealed plans to lay off several hundred employees in its streaming and studio operations, extending the trend of substantial job reductions within the industry into 2024.
The new job cuts will primarily impact staff at Prime Video and Amazon MGM Studios in the Americas, with notifications expected to be delivered on Wednesday and in most other regions by the end of the week, as reported by Reuters.
This comes just a day after internal sources revealed that Amazon would be laying off over 500 people from Twitch.
Amazon, a prominent online retail giant, had already cut over 27,000 jobs in the previous year as part of a broader wave of tech layoffs in the United States, following extensive hiring during the pandemic.
Mike Hopkins, Senior Vice President of Prime Video and Amazon MGM Studios, conveyed in a note to employees that the company has identified opportunities to streamline and discontinue investments in certain areas, redirecting focus towards content and product initiatives that promise the most significant impact.
Over the past few years, Amazon has made substantial investments to strengthen its media business, including an $8.5 billion deal for MGM and approximately $465 million spent on the first season of “The Lord of the Rings: The Rings of Power” on Prime Video in 2022.
In addition to the streaming and studio divisions, Amazon’s streaming platform Twitch is reportedly planning to cut 35% of its workforce, amounting to around 500 workers, as reported by Bloomberg News on Tuesday. The move is expected to be announced soon and follows nine years of unprofitability for Twitch since its acquisition by Amazon. The report highlights the ongoing challenges in making the business financially viable despite the initial acquisition.
(With inputs from agencies)
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