Amazon.com has unveiled its intention to initiate layoffs affecting several hundred employees in its streaming and studio operations, extending the trend of substantial job cuts witnessed across various industries into 2024.
As reported by Reuters, notifications of job impacts at Prime Video and Amazon MGM Studios in the Americas are scheduled for Wednesday, with notices for most other areas expected to be issued by the end of the week.
Mike Hopkins, the Senior Vice President of Prime Video and Amazon MGM Studios, communicated the company’s decision in an internal note, stating, “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.”
This move follows Amazon’s reduction of over 27,000 jobs last year, aligning with a broader trend of tech layoffs in the US after a period of extensive hiring during the pandemic.
While Amazon has actively invested in its media business, such as the $8.5 billion acquisition of MGM and a substantial expenditure of around $465 million on the first season of “The Lord of the Rings: The Rings of Power” on Prime Video in 2022, the company is now strategically shifting its focus to prioritize content and product initiatives with the highest impact.
In addition to the job cuts in the streaming and studio divisions, Amazon is poised to implement changes to its Prime Video offerings. This includes the introduction of advertisements on Prime Video and the launch of a pricier, ad-free subscription tier in select markets, mirroring strategies employed by competitors like Netflix and Walt Disney.
Post Your Comments