Major layoffs expected at Amazon in Prime Video and Studios
(Reuters) – Amazon.com will lay off several hundred workers in its streaming and studio operations, it said in an internal memo on Wednesday, as the companies continue their massive layoffs over the past two years through 2024.
Prime Video and Amazon MGM Studios in the Americas will be notified of departing staff on Wednesday, and in most other territories by the end of the week.
The online retail behemoth cut more than 27,000 jobs last year as part of a wave of U.S. tech layoffs after the industry had recruited heavily during the pandemic.
“We’ve identified opportunities to reduce or stop investing in certain areas while increasing our investment and focusing on content and product initiatives that deliver the greatest impact,” Mike Hopkins, executive vice president of Prime Video and Amazon MGM Studios, told employees. A memo seen by Reuters.
The company has spent aggressively in recent years to bolster its media business, including an $8.5 billion deal for MGM and about $465 million for the first season of Prime Video’s “The Lord of the Rings: The Rings of Power” in 2022.
It also plans to introduce ads on Prime Video, as well as a more expensive ad-free subscription tier in some markets, such as rivals Netflix NFLX.O and Walt Disney DIS.N.
Following job cuts in 2022 and 2023, many companies are now targeting select projects and divisions as they prioritize their resources.
Amazon recently cut some jobs in its Alexa voice assistant division, while Microsoft cut some of its LinkedIn professional network.
Amazon’s Twitch service is set to lay off 500 employees, or about 35 percent of its workforce, according to a media report published on Tuesday.
Its shares, which rose more than 80% last year, were up 1.5% in afternoon trade.
