Amazon.com is set to lay off several hundred employees in its streaming and studio operations, including Prime Video and Amazon MGM Studios in the Americas. The internal announcement was made on Wednesday, marking a continuation of job cuts that various companies have implemented over the past two years.
Layoffs Details
- Affected Departments: Layoffs will impact staff in Prime Video and Amazon MGM Studios.
- Geographical Scope: Employees in the Americas will receive notifications on Wednesday, and those in most other regions will be informed by the end of the week.
- Previous Layoffs: Amazon reduced its workforce by more than 27,000 jobs in the previous year, contributing to the broader trend of tech layoffs following a period of significant hiring during the pandemic.
Statement from Amazon
Mike Hopkins, Senior Vice President of Prime Video and Amazon MGM Studios, conveyed to employees that the company has identified opportunities to scale back investments in specific areas. The strategic decision aims to redirect focus and resources toward content and product initiatives that can deliver the most impactful outcomes.
Amazon’s Media Business Investments
- Acquisitions: Amazon has made substantial investments in its media business, highlighted by the $8.5 billion acquisition of MGM.
- Content Spending: The company has allocated significant funds, exemplified by the expenditure of around $465 million on the first season of “The Lord of the Rings: The Rings of Power” on Prime Video in 2022.
Strategic Shift
The layoffs signal a strategic shift for Amazon, emphasizing a more concentrated investment in content and key product initiatives while making adjustments in other areas. The move aligns with the company’s commitment to optimizing its operations and staying competitive in the rapidly evolving media and streaming industry.
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