Amazon has announced plans to lay off several hundred employees in its streaming and studio operations. The move is believed to be part of the company’s ongoing efforts to streamline operations and cut costs.
This news comes as companies across various industries are still reeling from the economic impact of the COVID-19 pandemic. With many businesses struggling to stay afloat, job cuts have become a common occurrence.
Employees facing layoffs at Prime Video and Amazon MGM Studios in the Americas will receive notifications on Wednesday, with staff in most other regions being informed by the week’s end.
The e-commerce giant slashed over 27,000 jobs last year, contributing to a broader trend of U.S. tech layoffs following extensive hiring in the industry during the pandemic.
“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,” Mike Hopkins, senior vice president of Prime Video and Amazon MGM Studios, told employees.
In recent years, the company has pursued aggressive investments to fortify its media business, such as the $8.5 billion acquisition of MGM and an expenditure of approximately $465 million on the first season of “The Lord of the Rings: The Rings of Power” on Prime Video in 2022.
It is also set to roll out ads on Prime Video as well as a more expensive ad-free subscription tier in some market, similar to moves by rivals Netflix NFLX.O and Walt Disney.
Following extensive job cuts in 2022 and 2023, numerous companies are now focusing on specific projects and divisions as they strategically reallocate their resources.
Amazon recently downsized its workforce in the Alexa voice assistant division, and Microsoft made staff reductions in its LinkedIn professional network. Furthermore, Amazon’s Twitch service is reportedly planning to lay off approximately 500 employees, accounting for around 35% of its total workforce, according to media reports.