Amazon is cutting jobs at its Prime Video and MGM Studios divisions, according to a memo sent by Mike Hopkins, the head of these units. The memo, viewed by CNBC, revealed that the company is eliminating several hundred roles to prioritize long-term business success. Hopkins stated that the decision comes after a thorough review of the business to enhance the delivery of movies, TV shows, and live sports to global customers.
The job cuts align with Amazon’s broader efforts to streamline its workforce. On the same day, the company’s Twitch livestreaming unit announced a reduction of 500 jobs. This move follows the company’s extensive layoffs initiated at the end of 2022 and continuing through 2023, involving over 27,000 job cuts across various departments.
What’s the issue?
Hopkins emphasized the company’s commitment to making Prime Video the preferred entertainment destination globally, citing achievements in expanding content selection, including blockbuster movies, TV series, and live sports. The acquisition of MGM further contributed to investments in theatrical films and the growth of MGM+ and licensing and third-party production businesses.
Acknowledging the challenging nature of the decision, Hopkins expressed gratitude to the affected employees for their contributions. The company will begin notifying impacted colleagues, with the process expected to be completed in the Americas on the same day and in other regions by the end of the week. Amazon is following local processes, which may involve consultation with employee representative bodies, potentially leading to longer timelines in certain countries.
To support the transition, Company is providing packages that include a separation payment, transitional benefits based on the country, and external job placement assistance. Hopkins concluded the memo by expressing confidence in the company’s strategic prioritization and continued investments, positioning Amazon for a robust future in the highly competitive entertainment industry.
Amazon to eliminate hundreds of roles across Twitch, Prime Video and MGM Studios
Amazon Restructuring Workforce:
The job cuts at Amazon reflect the company’s adaptability to the evolving dynamics of the entertainment industry. With a focus on long-term success, the strategic decision to trim roles underscores Amazon’s commitment to staying agile in a rapidly changing landscape. The comprehensive review of business aspects demonstrates a dedication to delivering a more personalized and user-friendly entertainment experience for global customers. As Amazon restructures its workforce, the commitment to prioritized initiatives and continued investments in programming, marketing, and product development signals confidence in the resilience of Prime Video as a leading entertainment destination. The challenging transition is mitigated by the support measures provided, reinforcing Amazon’s commitment to its employees amid industry transformations.
