Prime Video and Amazon Studios are set to lay off several hundred employees. This development was confirmed through an internal memo released this morning by Senior Vice President Mike Hopkins.
Prime Video, Amazon Studios to Layoff Hundreds in Restructuring
Amazon has cut down on certain investments, focusing more on impactful content and product initiatives. This decision, aimed at cost-saving, was revealed in an email sent to staff by Hopkins.
While Hopkins did not specify the exact number of job cuts, he mentioned that 'several hundred' employees are expected to be laid off. Most of these job losses will affect American workers, who will be notified by the end of the day. Employees in other global locations will receive similar notifications by the end of the week.
In his email, Hopkins expressed the difficulty of the decision, acknowledging the hardship of parting ways with skilled team members. This move by Amazon underscores the company's shift in strategy, as it focuses on areas that promise the greatest return on investment, particularly in its content and product sectors.
This restructuring is part of Amazon's ongoing efforts to adapt to the rapidly changing entertainment industry, balancing its financial objectives with its ambitious content and product development plans.
A year ago, Amazon, the parent company of Amazon Studios and Prime Video, significantly reduced its workforce, laying off about 25,000 employees. This decision reversed the company's massive hiring increase in 2020, triggered by the Covid pandemic. The sudden surge in demand for Amazon's e-commerce delivery services during the onset of COVID-19 led to a rapid expansion in staff.
However, as the situation evolved, Amazon adjusted its workforce to align with the changing market conditions. Last spring, Amazon Studios and Prime Video, which had approximately 7,000 employees, also downsized by letting go of 100 workers. This move reflected the company's efforts to optimize operations post-pandemic, as the initial boom in demand stabilized.
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Twitch Announces Layoffs Affecting Over 500 Jobs
In an announcement on Wednesday, Amazon revealed its decision to reduce the workforce at Twitch, a popular livestreaming platform among gamers. The move comes as part of Amazon's efforts to ensure the sustainability of its operations.
Twitch CEO Dan Clancy addressed the staff in a message, acknowledging the company's ongoing commitment to running a sustainable business. He regretted reducing the workforce by just over 500 employees at Twitch, emphasizing that it would be a challenging day for all.
Clancy highlighted Twitch's mission of empowering communities to create together and praised the crucial role played by every team member in fostering this mission.
Furthermore, Clancy pointed out that despite Twitch's substantial success, the organization's size had been based on optimistic growth projections for the future rather than its current scale. Like other tech companies, Twitch is now realigning its organization to match its current business scale and conservative growth expectations.
Clancy also noted that Twitch had paid over $1 billion to streamers the previous year, underscoring the platform's strength. Reducing the workforce is a strategic move to ensure the organization is appropriately sized according to its present status and realistic growth prospects.
This adjustment reflects Amazon's commitment to responsible management and maintaining a sustainable business model for Twitch while also acknowledging the platform's continued strength in the livestreaming space.
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