Amazon is undergoing significant layoffs across its Prime Video and Amazon MGM Studios divisions, according to a report by Variety. The primary driver behind these layoffs is the company’s standard cost-saving strategy. In an internal email, Mike Hopkins, Amazon’s entertainment chief, explained that the company has identified areas where it can cut or discontinue investments while intensifying its focus on high-impact content and product initiatives.
Though Hopkins did not specify the exact number of affected employees, he mentioned that “several hundred” individuals would be impacted. American workers are expected to receive notifications by the end of the day, with global employees informed by the week’s end. Expressing regret over parting ways with talented team members, Hopkins emphasized the challenging nature of saying goodbye.
Despite the layoffs, Amazon is assuring affected employees of support through benefit packages that include a separation payment and external job placement assistance. The company remains committed to continuous investments in programming, marketing, and product development.
This round of layoffs follows a recent trend at Amazon, which has seen substantial workforce reductions, including a significant cutback at Twitch, amounting to 35 percent of the platform’s employees. Amazon-owned Twitch, despite boasting over 200 million paying Prime subscribers, has faced previous layoffs in its gaming and Alexa divisions. In 2023, Amazon executed a massive layoff, letting go of nearly 18,000 employees from its retail and recruiting divisions, all while reporting record profits.
Simultaneously, Twitch, under Amazon’s ownership for nearly a decade, is preparing to lay off over 500 people, constituting 35 percent of its workforce. CEO Dan Clancy, who assumed the role in March 2023, cited ongoing efforts to build a more sustainable business, acknowledging past staff reductions and operational adjustments. The decision to cease operations in Korea and the departure of key executives in the preceding year were part of Twitch’s broader strategy to address financial challenges.
Twitch has struggled to achieve profitability, given the substantial costs associated with supporting 1.8 billion hours of live video content monthly. The recent layoffs and operational changes aim to align Twitch’s resources with the scale of its business. This move is part of Amazon’s broader cost-cutting mission, with the company laying off 27,000 employees over the past two years. The trend of large-scale layoffs has been observed across various tech companies, including Google, Meta, Spotify, Epic Games, and Unity.
