Amazon, the e-commerce giant, has announced a new round of layoffs, affecting ‘several hundred’ employees from its Prime Video and MGM Studios division. This move comes after Amazon laid off thousands of employees last year. In an internal memo sent to Amazon employees, Mike Hopkins, the Senior Vice President of Prime Video and Amazon MGM Studios, explained that the company conducted reviews to identify areas where it could reduce or discontinue investments, aiming to enhance its ability to deliver breakthrough movies, TV shows, and live sports.
According to Hopkins, the restructuring is part of Amazon’s effort to focus on content and product initiatives that deliver the most impact. The layoffs will affect several hundred roles across the Prime Video and Amazon MGM Studios organization. While the exact number of impacted employees is not disclosed, Amazon mentioned that it will be a relatively small percentage of Hopkins’ team. The layoffs are also influenced by challenges arising from the acquisition of MGM for $8.5 billion in 2022.
Affected employees will be notified about their layoffs, with the outreach process expected to be completed promptly. In addition to the layoffs at Prime Video and MGM Studios, Amazon is reviewing its FAST service, Freevee.
Coincidentally, the announcement of Amazon’s layoffs aligns with a similar move by its subsidiary, Twitch. The live-streaming company revealed plans to lay off around 35% of its workforce, affecting approximately 500 employees. Twitch CEO Dan Clancy communicated the decision in a message to staff, characterizing it as a painful step. Twitch had already reduced its workforce by 400 employees in March 2023 as part of a broader downsizing at Amazon. Additionally, many senior leaders departed during that period, and Twitch had previously announced its exit from South Korea due to expensive network charges.
Regarding the total number of layoffs at Amazon, the company cut over 27,000 jobs last year, following a trend of mass layoffs across Silicon Valley and global offices. Other major tech companies, including Facebook and Microsoft, each announced layoffs of 10,000 workers, while Google reduced its workforce by 12,000.
In summary, Amazon’s latest round of layoffs at Prime Video and MGM Studios reflects the company’s strategic realignment to prioritize impactful content and product initiatives. This move follows a series of job cuts across the tech industry and aligns with the company’s ongoing efforts to optimize its operations.
