Amazon is undergoing workforce reductions, with several hundred positions being cut across its Prime Video and MGM Studios unit. The move comes as part of the company’s strategic shift, including the introduction of ads on Prime Video content starting January 29. Prime members can opt for an ad-free experience by paying an additional $2.99 per month. Mike Hopkins, Senior Vice President of Prime Video and Amazon MGM Studios, explained that the company is redirecting investments to high-impact areas while scaling back in others. This move follows Amazon’s earlier announcements of significant job cuts, with plans to lay off 9,000 employees in March, on top of the 18,000 layoffs announced in January 2023.
The job cuts extend beyond Prime Video, as Amazon-owned Twitch, the video game streaming platform, is also undergoing layoffs, affecting more than 500 employees. Twitch CEO Dan Clancy mentioned the need for cost reductions and increased efficiency to make the division profitable. The layoffs are seen as an effort to align the organization with the current scale of business rather than optimistic future expectations.
Employees departing from Amazon Prime Video are set to receive separation payments and additional benefits, including job placement support. In May, Amazon had previously announced plans to distribute its original films and TV shows to media outlets outside Prime Video for the first time. This distribution, facilitated by the newly formed Amazon MGM Studios Distribution unit, marked an expansion of titles from the Hollywood studio MGM, acquired by Amazon for $8.5 billion in 2022, featuring over 4,000 film titles and 17,000 TV episodes.
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