Amazon is implementing layoffs affecting hundreds of individuals in both Prime Video and Amazon MGM Studios, as reported by Variety. The decision, driven by a typical cost-saving motive, reflects the company’s strategic move to optimize its financial resources. In an email to the staff, Amazon’s entertainment chief, Mike Hopkins, explained that they 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.”
While Hopkins did not specify the exact number of affected employees, he mentioned that “several hundred” individuals would be affected. Most American workers are expected to be informed by the end of the day, with global employees receiving notifications by the week’s end. In his communication, Hopkins acknowledged the challenge of saying farewell to talented individuals within the Amazon workforce.
Amazon has pledged support for the laid-off workers by offering benefit packages that include a separation payment and external job placement assistance. Despite the layoffs, the company emphasizes its commitment to “continued investments in programming, marketing, and product.”
Amazon has been undergoing a series of layoffs despite boasting over 200 million paying Prime subscribers. The recent workforce reductions extended to Twitch, with a significant 35 percent cut in its workforce. In November of the previous year, the gaming division witnessed nearly 200 layoffs, and a few hundred employees were let go from the Alexa division. In January of the same year, a substantial layoff affected 18,000 individuals in Amazon’s retail and recruiting divisions. Notably, the company reported record profits in 2023.
