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Amazon axes hundreds of employees at Twitch and in studios
Amazon axes hundreds of employees at studios and Twitch
Amazon is cutting hundreds of jobs across its studio division and subsidiary, Twitch, to cut costs and streamline operations.
Twitch, the popular video streaming platform, will reduce its workforce by over 35 percent, eliminating just over 500 positions.
According to an internal email circulated among staff, Amazon's Prime Video and MGM Studios is also to shed hundreds of jobs.
The Amazon cuts come amid a broader trend in the tech industry.
Companies have been axing their workforce to adapt to evolving economic conditions and shifting consumer habits post-pandemic.
Amazon has already laid off 27,000 employees since late 2022 to save costs after a hiring spree during the pandemic.
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Mike Hopkins, Senior Vice President of Prime Video and Amazon MGM Studios, said: “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.”
Recently, tech companies like Xerox and Unity Software have undergone job cuts.
Xerox plans to cut 15 percent of its 23,000-person staff, while Unity Software announced 25 percent downsizing, affecting 1,800 roles.
Amazon, known for its extensive efforts in building its streaming platform, acquired MGM Studio for $8.5 billion in 2022.
It highlights the company's commitment to the streaming industry.
"Our organization is still meaningfully larger than it needs to be given the size of our business"
Twitch, acquired for approximately a billion dollars a decade ago, has been a key player in the gaming community.
However, last year, the platform faced a round of layoffs affecting 400 employees as part of broader cost-cutting measures at Amazon.
Twitch CEO Dan Clancy said: “Unfortunately, despite these efforts, it has become clear that our organization is still meaningfully larger than it needs to be given the size of our business.”
The gaming industry has seen major layoffs in 2023.
According to investment management firm Gabelli Funds data, the industry layoffs impacted over 9,000 jobs at major companies like Epic Games and Microsoft's Xbox.
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