Amazon is laying off several hundred employees in its streaming and studio operations. The online retail giant said in an internal memo on Wednesday, Jan. 10, that the company will eliminate hundreds of jobs in its Prime Video and MGM Studios departments.
In an internal note obtained by Reuters, Senior Vice President of Prime Video and Amazon MGM Studios Mike Hopkins told employees, “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 cuts also affect around 500 roles in the Twitch streaming platform, which equates to 35% of its staff in that division. In the memo to staff, Amazon leadership said the company would be shifting its investments to focus on the highest-impact products. Amazon has laid off more than 27,000 positions since late 2022.
“It’s important that we prioritize our investments for the long-term success of our business, while relentlessly focusing on what we know matters most to our customers,” Hopkins said.
The layoffs come as Amazon had invested heavily in developing the media side of its business. Amazon reportedly spent $8.5 billion to acquire MGM Studios and spent an additional $465 million in 2022 on the first season of “The Lord of the Rings” show on Amazon Prime.
