Amazon laid off “a number of hundred” staff on Wednesday within the MGM Studios, Prime Video, and Twitch divisions. Workers have been let go in an e mail despatched by Senior Vice President Mike Hopkins.
“All through the previous yr, we have checked out almost each facet of our enterprise with an eye fixed in direction of bettering our capability to ship much more breakthrough motion pictures, TV exhibits, and dwell sports activities in a customized, straightforward to make use of leisure expertise for our international prospects,” Hopkins wrote within the memo that was obtained by CNBC. “Consequently, we have recognized alternatives to cut back or discontinue investments in sure areas whereas rising our funding and deal with content material and product initiatives that ship probably the most influence. Because of these selections, we can be eliminating a number of hundred roles throughout the Prime Video and Amazon MGM Studios group.”
Hopkins referred to as the choice to slash staffers “troublesome” and famous that the layoffs have been international and will take as much as one week for all affected staff to be contacted.
“It’s arduous to say goodbye to gifted Amazonians who’ve made significant contributions on behalf of our prospects, staff and enterprise,” he mentioned. “Thanks in your dedication and work.”
Individually, on the live-streaming unit Twitch, which Amazon acquired in 2014, 500 staffers were cut on Wednesday.
Last year, Amazon initiated the biggest spherical of layoffs in firm historical past when CEO Andy Jassy introduced that the corporate could be letting go of 18,000 employees, citing a troublesome financial time and fast hirings within the years prior amid the pandemic.
Amazon had a robust Q3 2023 after leaping 13% in income amid cost-cutting initiatives.
“We had a robust third quarter as our value to serve and velocity of supply in our Shops enterprise took one other step ahead, our AWS progress continued to stabilize, our Promoting income grew robustly, and general working earnings and free money stream rose considerably,” Jassy said at the time.
It is estimated that the corporate has laid off 27,000 staff since final fall.
Amazon was up over 61% yr over yr as of Wednesday afternoon.