Amazon cuts hundreds of jobs at studios and Twitch
Amazon is laying off hundreds of employees at its Studios division as well as its subsidiary Twitch to cut costs, the latest in a wave of new job cuts across the tech industry.
Twitch, a video streaming platform, will cut more than 500 roles or 35 percent of its workforce, according to a Blog post on company website, An email sent to employees on Wednesday said Prime Video and Amazon MGM Studios would eliminate hundreds of jobs.
Amazon is set to lay off 27,000 workers by the end of 2022, as the company cuts costs in an effort to recover from hyperexpansion during the pandemic.
“It is important that we prioritize our investments for the long-term success of our business, while continuing to focus on what we know our customers will love,” Mike Hopkins, senior vice president of Prime Video and Amazon MGM Studios, wrote in an email. matters most to.” , He said the company will focus its investments on products with the highest impact and cut others.
Amazon's cuts signal a worrying trend for tech companies, which laid off thousands of employees last year in response to tough economic conditions and changes in consumer habits as people returned to everyday life in the wake of the pandemic. Xerox said earlier this month it would cut 15 percent of its 23,000-person workforce, and video game software provider Unity Software said it would cut 1,800 roles, or 25 percent of its workforce.
Amazon said the layoffs involve a relatively small percentage of people in the division, though it declined to provide numbers. Twitch declined to comment beyond the blog post.
Amazon has worked for years to build out its streaming platform, including the acquisition of MGM Studios for $8.5 billion in 2022. The company considers streaming an important part of its package of Prime offerings, charging an annual fee for fast shipping and other features.
It also acquired Twitch, popular among gamers who stream their online video plays, for nearly a billion dollars a decade ago. Last year, the company laid off 400 people as part of overall cutbacks at Amazon, and in December Twitch announced it was closing its workforce by the end of this February, citing “prohibitively expensive” costs. Will discontinue its services in Korea.
“Unfortunately, despite these efforts, it has become clear that our organization is still meaningfully large given the size of our business,” Twitch chief executive Dan Clancy wrote in a blog post. This is essential to ensure that we can continue to serve our streamers without impacting their ability to support their careers on Twitch.
More than 9,000 people in the gaming industry could be affected by layoffs in 2023, according to data collected by investment management firm Gabelli Funds.
“The layoffs were well above the historical industry average and affected employees at some of the largest companies in the industry,” including Epic Games and Microsoft's Xbox, said Alex Bocanfuso, research analyst at Gabelli Funds.