Amazon is set to cut hundreds of jobs at its Prime Video and MGM Studios as part of its strategy to refocus its investments.
Mike Hopkins, senior vice president of Prime Video and Amazon MGM Studios, notified employees of the layoffs in a memo.
Hopkins, as reported by CNBC, said following a year of review, “we have identified opportunities to reduce or discontinue investments in certain areas while increasing our investment and focus on content and product initiatives that deliver the most impact.
“As a result of these decisions, we will be eliminating several hundred roles across the Prime Video and Amazon MGM Studios organisation.”
The job cuts extend beyond these divisions, with Amazon’s Twitch livestreaming service also announcing the termination of 500 positions.
Twitch, which was acquired by Amazon in 2014 for nearly $1bn, is widely recognised as a leading livestreaming platform for video gamers.
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In a blog post, Twitch CEO Dan Clancy explained the decision as a move to “rightsize” the company.
Clancy said: “As you all know, we have worked hard over the last year to run our business as sustainably as possible. Unfortunately, we still have work to do to rightsize our company and I regret having to share that we are taking the painful step to reduce our headcount by just over 500 people across Twitch.”
Amazon Prime’s departing staff will be provided with severance pay and additional support, including assistance with finding new employment.
This round of layoffs is a component of Amazon’s larger plan to simplify its business after a substantial period of growth.
The company has been reducing its workforce since late 2022, initiating the most extensive layoffs in its history, with over 27,000 jobs cut across various departments.
In recent months, Amazon laid of many employees in gaming and music divisions.