Amazon Cutting Hundreds of Jobs at Prime Video and Amazon MGM Studios
Amazon is cutting hundreds of jobs in its Prime Video and Amazon MGM Studios division.
Mike Hopkins, the executive who leads the division, announced the reduction in an email Wednesday morning, writing that “several hundred roles” would be eliminated.
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“Our industry continues to evolve quickly and it’s important that we prioritize our investments for the long-term success of our business, while relentlessly focusing on what we know matters most to our customers,” he wrote. “Throughout the past year, we’ve looked at nearly every aspect of our business with an eye towards improving our ability to deliver even more breakthrough movies, TV shows, and live sports in a personalized, easy to use entertainment experience for our global customers. As a result, 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.”
Prime Video is home to shows like Reacher and The Boys, while Amazon MGM produces films from the James Bond and Rocky franchises, among others. Freevee, Amazon’s free ad-supported streaming service, also has original programming like Jury Duty and Primo.
It is not clear how this week’s cuts will impact those divisions, or where they are focused.
They also come just before Amazon is set to turn on ads for Prime Video, requiring users to pay an extra $3 per month to avoid them. The move is estimated to instantly deliver billions of dollars in incremental revenue to the division.
The cuts come after Amazon laid off more than 25,000 employees last year. Prime Video and Amazon MGM also faced cuts in early 2023.
Amazon also announced Wednesday that it would slash over 500 jobs at Twitch, the livestreaming platform popular with gamers.
“As you all know, we have worked hard over the last year to run our business as sustainably as possible,” Twitch CEO Dan Clancy wrote in a note to staff. “Unfortunately, we still have work to do to rightsize our company and I regret having to share that we are taking the painful step to reduce our headcount by just over 500 people across Twitch. This will be a very hard day. Our service exists to empower communities to create, together, and every single one of you has played a vital role in fostering our community and furthering that mission.”
“Last year we paid out over $1 billion to streamers,” Clancy added. “So while the Twitch business remains strong, for some time now the organization has been sized based upon where we optimistically expect our business to be in 3 or more years, not where we’re at today. As with many other companies in the tech space, we are now sizing our organization based upon the current scale of our business and conservative predictions of how we expect to grow in the future.”
Read Hopkins’ note below:
Team,
We’ve taken significant steps towards our long-term vision of making Prime Video the first-choice entertainment destination for customers worldwide, and I’m proud of everything we’ve accomplished as a team to date. Our investments in programming, marketing, and technology have enabled us to expand our selection of blockbuster movies, hit tv series, live sports, the world’s largest TVOD catalog along with over 650 partner Channels worldwide, and AVOD services including Freevee – all available in a single destination, delighting customers around the globe. And, through our acquisition of MGM, we’ve increased our investments in theatrical films and driven growth in MGM+ and our licensing and third-party production businesses.
Yet, at the same time, our industry continues to evolve quickly and it’s important that we prioritize our investments for the long-term success of our business, while relentlessly focusing on what we know matters most to our customers. Throughout the past year, we’ve looked at nearly every aspect of our business with an eye towards improving our ability to deliver even more breakthrough movies, TV shows, and live sports in a personalized, easy to use entertainment experience for our global customers. As a result, 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. As a result of these decisions, we will be eliminating several hundred roles across the Prime Video and Amazon MGM Studios organization.
Today, we will begin to reach out to colleagues who are impacted by these role reductions. Notifications will be sent out shortly, and we expect all notifications in the Americas to be completed this morning (Pacific time), and most other regions by the end of the week. We are following local processes, which may include time for consultation with employee representative bodies, possibly resulting in longer timelines to communicate in some countries.
This is a difficult decision to make and one that my leadership team and I do not take lightly. It is hard to say goodbye to talented Amazonians who’ve made meaningful contributions on behalf of our customers, team and business. Thank you for your dedication and work. To help with the transition, we are providing packages that include a separation payment, transitional benefits as applicable by country, and external job placement support.
Our prioritization of initiatives that we know will move the needle, along with our continued investments in programming, marketing and product, positions our business for an even stronger future. Prime Video is one of the most popular benefits for Prime members, and one of most widely used entertainment destinations in the world. I’m proud of the work you do every day on behalf of our customers, and I’m looking forward to continuing to build our business for the future.
-Mike
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