Big Tech giant Amazon laid off hundreds of employees in its Prime Video and MGM Studios divisions on Wednesday, adding to a string of major job cuts that began in 2022.
Key points:
- Amazon lay off hundreds in Prime Video and MGM Studios.
- This follows 500 job cuts at Twitch and over 27,000 across the company since 2022.
- The reason for the cuts is unclear, but economic uncertainty and streaming competition might play a role.
- The impact on employees is significant, with hundreds losing their jobs.
- It’s unclear whether more cuts are coming.
Big Tech giant Amazon laid off hundreds of employees in its Prime Video and MGM Studios divisions on Wednesday, adding to a string of major job cuts that began in 2022. This latest round follows just yesterday’s announcement of 500 layoffs at Twitch, Amazon’s popular livestreaming platform.
In a memo to staff, Mike Hopkins, who oversees these units, said the company is “prioritizing investments for the long-term success” of its entertainment business. This means reducing or ending some current projects to focus on others with greater potential. Specific details on which projects will be affected haven’t been disclosed.
These layoffs bring Amazon’s total headcount reduction to over 27,000 since late 2022, making it the company’s largest layoff period ever. The cuts have impacted nearly every part of Amazon, from corporate employees to warehouse workers.
Reasons for the cuts remain unclear, but the ongoing economic uncertainty and intense competition in the streaming market might play a role. Amazon faces fierce competition from established players like Netflix and Disney+, as well as newcomers like Apple TV+ and HBO Max.
The impact on employees is significant, with hundreds losing their jobs just months after many others across the company faced the same fate. Amazon has offered severance packages and career assistance to those affected.
It’s unclear whether these layoffs mark the end of Amazon’s downsizing. With the economic climate still volatile and competition in the streaming wars heating up, more cuts could be on the horizon.