Amazon.com stated in an internal note on Wednesday that it will lay off several hundred employees in its streaming and studio operations, extending the massive job cuts by companies over the past two years into 2024.
Employees facing the exit at Prime Video and Amazon MGM Studios in the Americas will be informed on Wednesday and in most other regions by the end of the week.
The online retail giant has cut over 27,000 jobs last year as part of a wave of U.S. tech layoffs after the industry hired heavily during the pandemic.
“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,” said Mike Hopkins, senior vice president of Prime Video and Amazon MGM Studios, in a note seen by Reuters.
The company has spent aggressively in recent years to bolster its media business, including the $8.5 billion deal for MGM and around $465 million on the first season of “The Lord of the Rings: The Rings of Power” on Prime Video in 2022.
These job cuts are part of Amazon’s broader strategy to focus on specific areas that can generate significant impact on its streaming and studio operations. The company aims to consolidate resources and capitalize on projects and content that are more profitable and effective.
This announcement comes amid a changing economic landscape and reflects the company’s efforts to readjust its strategy in an increasingly competitive entertainment market.
It’s important to note that while these layoffs are a tough decision, Amazon remains committed to its goal of offering high-quality content and exceptional experiences to its customers, prioritizing strategic investments that can drive long-term growth for the company.
