News: Amazon downsizing: Layoffs hit Studios and Prime Video departments

Strategic HR

Amazon downsizing: Layoffs hit Studios and Prime Video departments

Amazon issued a statement explaining that it had been closely monitoring economic conditions and its organisational requirements, resulting in a decision to modify resources. The statement read, "As a consequence, a few positions will be eliminated within certain teams."
Amazon downsizing: Layoffs hit Studios and Prime Video departments

As part of its efforts to streamline its operations, Amazon is reducing its workforce in the Amazon Studios and Prime Video division. Around 100 employees, representing approximately 1% of the division's 7,000 workforce, are expected to be affected by the layoffs. 

This move comes as many tech and entertainment companies have implemented cost-cutting measures in response to challenging economic conditions.

According to Business Today, Amazon released a statement saying that it has been closely monitoring economic conditions and its organisational requirements. As a result, it has decided to adjust resources and eliminate a small number of roles in some teams.

Located in Culver City, California, United States, Amazon Studios serves as the film and TV production division of Amazon, providing its streaming service, Prime Video, with popular shows like The Marvelous Mrs Maisel, The Lord of the Rings: The Rings of Power, and the upcoming spy thriller Citadel. 

In 2020, Amazon further expanded its entertainment business by acquiring MGM Studios, known for its Creed franchise, for a whopping $8.5 billion.

While Amazon Studios' film arm has been emphasising theatrical releases, including recent titles such as Air starring Ben Affleck and Matt Damon, the division has not been exempt from the company's cost-cutting initiatives, resulting in the elimination of some positions.

Amazon's job cuts follow a series of layoffs across the tech and entertainment industries. Meta, Google, and Roku are among the companies that have recently reduced their workforces. Entertainment behemoth Walt Disney Co. is also cutting 7,000 jobs, aiming to save $5.5 billion in costs.

Ray Wang, CEO of Constellation Research, explained that "Everyone is cutting down on expenses, which is more of an adjustment to prepare for the anticipated economic conditions."

Amazon made headlines earlier this year with the layoff of 18,000 employees, and another 9,000 job cuts followed in March. The second wave of job cuts affected various divisions, including Twitch, a popular platform that allows creators to live stream video games and other content to audiences. 

Known for its live-streaming capabilities, Twitch has garnered a large following among gaming and creative enthusiasts. In addition, Amazon declared on Wednesday that it intends to phase out its Halo fitness tracker business.

Read full story

Topics: Strategic HR, #Layoffs, #HRTech, #HRCommunity

Did you find this story helpful?



How do you envision AI transforming your work?