As businesses continue their significant job cuts from the previous two years into 2024, Amazon.com announced in an internal message on Wednesday that it will be laying off several hundred staff in its streaming and studio divisions.
Amazon lay off staff: Employees who will be leaving Prime Video and Amazon MGM Studios in the Americas will be notified on Wednesday; by the end of the week, most other territories will also receive this information.
The massive online retailer laid off more than 27,000 workers last year as part of a wave of tech layoffs in the United States following the industry’s heavy hiring during the pandemic.
Mike Hopkins, senior vice president of Prime Video and Amazon MGM Studios, informed staff members in a note obtained by Reuters, “We’ve 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.”
The $8.5 billion acquisition of MGM and the approximately $465 million investment on the first season of “The Lord of the Rings: The Rings of Power” on Prime Video in 2022 are just two examples of the company’s recent significant spending to support its media sector.
In line with rivals Netflix NFLX.O and Walt Disney, it also plans to introduce advertisements on Prime Video in select markets, along with a more costly ad-free subscription option.
Following massive layoffs in 2022 and 2023, a lot of businesses are already focusing on particular initiatives and business units as they reallocate their resources.
Microsoft recently let go of several employees from its LinkedIn professional network, and Amazon recently reduced employment at its Alexa speech assistant division.
A media source on Tuesday stated that 500 workers, or around 35% of the company, would be let go by Amazon’s Twitch service.
After rising more than 80% in the previous year, its shares were up 1.5% in midday trading today.
