In a recent development, Amazon.com has announced plans to cut hundreds of jobs within its film and television studios as well as its popular video game-streaming platform, Twitch.
Mike Hopkins, the senior vice president of Amazon’s Prime Video and Amazon MGM Studios, shared this news in an email distributed to employees on Wednesday. According to Hopkins, the company has identified areas where they can reduce or discontinue investments while increasing their focus on content and product initiatives that have the most impact. Consequently, several hundred roles will be eliminated across the Prime Video and Amazon MGM Studios organization.
It is worth noting that Amazon acquired MGM in May 2021, making this decision significant in the broader context of their expanding entertainment business.
Meanwhile, Twitch Chief Executive, Dan Clancy, has also disclosed that the platform will be reducing its workforce by just over 500 employees. In a blog post, Clancy explained that Twitch has been working to build a more sustainable business and has taken various measures to cut costs and improve efficiency throughout the year. Despite these efforts, it has become evident that their organization is larger than necessary for the size of their business.
The news of these job cuts follows Amazon’s previous layoffs last year when they eliminated thousands of positions. In January 2023, the company announced a reduction of 18,000 jobs, followed by another 9,000 roles in March. This trend of job cuts has been observed in other tech companies as well, with Unity Software, Spotify Technology, and Etsy all making similar decisions in recent months.
Despite these challenging times, Amazon’s shares have experienced an upward trend, showing a 1.7% increase to $152.92 in early afternoon trading.
Overall, the decision to downsize certain divisions within Amazon reflects the company’s strategic focus on investing in high-impact content and product initiatives. While these job cuts are unfortunate, they are necessary to ensure the long-term sustainability and efficiency of the respective departments involved.