Amazon Implements Significant Workforce Reductions in Prime Video, MGM Studios, and Twitch

In a surprising move on Wednesday (January 10), Amazon, the e-commerce giant, initiated widespread layoffs affecting hundreds of employees across two prominent departments. The live video streaming platform Twitch and segments of the company dedicated to film and television production, namely Amazon Prime Video and Amazon MGM Studios, bore the brunt of the cuts.

 

According to an internal note obtained by CNN, a substantial number of employees at Amazon's Prime Video and Amazon MGM Studios faced job terminations. Mike Hopkins, a high-ranking executive overseeing these areas, conveyed in a confidential message that the task of notifying laid-off employees had commenced. The company's focus appears to be on prioritizing and bolstering investments in content and projects with significant market influence. This strategic shift involves identifying specific regions for potential divestment or reduction.

 

It's worth noting that Amazon's acquisition of MGM for a staggering $8.5 billion in 2022 elevated the company's standing in the entertainment industry, particularly boosting its streaming platform, Amazon Prime Video.

 

Simultaneously, on the same day, Twitch, the gaming livestream platform owned by Amazon, announced a separate layoff of 500 employees. This measure is being framed as a cost-cutting strategy amid the company's broader restructuring efforts.

 

These developments signal a noteworthy shift in Amazon's strategic priorities, as it grapples with optimizing investments in the highly competitive realms of streaming and entertainment.