Hundreds of Amazon employees in streaming and studio operations are set to lose their jobs as the company strives to focus on areas that bring the most impact.
On Wednesday, the company announced the impending layoff in an internal memo as corporations prolong substantial employment cuts made over the last two years into 2024.
Prime Video and Amazon MGM Studios employees in the Americas will be notified on Wednesday, while most other territories will be notified by the end of the week.
Did you read this?
Last year, online shopping eliminated more than 27,000 positions as part of a wave of layoffs in the United States' technology industry, which had hired significantly 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," Mike Hopkins, senior vice president of Prime Video and Amazon MGM Studios, told employees in a note by Reuters.
In recent years, the corporation has spent heavily to expand its media business, including the $8.5 billion transaction for MGM and around $465 million (approx. Ksh.73.6 billion) on the first season of "The Lord of the Rings: The Rings of Power" on Prime Video in 2022.
It also plans to introduce commercials on Prime Video and a more expensive ad-free membership tier in some markets, similar to moves made by competitors like Netflix and Walt Disney.
Following extensive employment layoffs in 2022 and 2023, many corporations are now re-prioritizing their resources by focusing on certain initiatives and divisions.
Amazon recently let off some employees in its Alexa voice assistant division, while Microsoft (MSFT.O) laid off some employees in its LinkedIn professional network.
According to a media source on Tuesday, Amazon's Twitch service would lay off 500 people, or around 35% of its workforce.
Its shares were up 1.5% in afternoon trading after rising more than 80% last year.
-1732263645.jpeg)
