Topline
Amazon issued a memo to employees Wednesday morning announcing plans to cut “several hundred” workers in its Prime Video and MGM Studios, while its video game live streaming service Twitch is laying off around 500 people, marking the tech firm’s latest round of cuts after 2023 saw record-breaking layoffs for the company.
Wednesday’s announcement follows a near record-breaking year for layoffs at Amazon
Key Facts
obtained a copy of the internal memo from the departments’ Senior Vice President Mike Hopkins, which said they came to the decision following a review of “nearly every aspect of” the company’s business operations.
Those impacted by the layoffs are expected to be told this week, with those in the Americas being notified by Wednesday afternoon and workers in other regions by the end of the week.
Affected employees will be given “a separation payment, transitional benefits as applicable by country, and external job placement support,” according to the memo.
Twitch is also cutting 35% of its staff, or about 500 workers, due to unprofitability, CEO Dan Clancy announced Wednesday morning, after Bloomberg reported Tuesday the company was preparing to announce the layoffs.
Crucial Quote
“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,” Hopkins said in the memo. “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.”
Big Number
More than 27,000. That’s how many employees Amazon laid off last year—a dramatic switch from the 2020 boom in hiring caused by pandemic-induced demand.
Key Background
Large U.S. companies across tech, healthcare, retail and beyond have increasingly cut costs over the past two years, resulting in a near 200% increase in layoffs in 2023. Employers feared the economy could be thrown into a recession due to rising inflation and multiple rounds of interest rate hikes by the Federal Reserve. Dozens of the country’s biggest companies were not immune to such fears last year, cutting hundreds of thousands of jobs—with Amazon reducing its workforce by nearly 30,000. The retailer announced in late 2022 it would cut 18,000 employees, ultimately cutting another 9,000 in early 2023, with smaller workforce reductions throughout the year. The 18,000 workers the company cut last January was the largest set of layoffs in the company’s history, according to AP. Amazon closed its $8.45 billion acquisition of MGM Studios in April 2022.
Further Reading
Amazon Is Cutting 35% Of Twitch’s Staff, Over 500 People ()
Amazon Earnings Call: Best Quarter Since 2021, But Cloud Division Underwhelms ()
2023 Layoff Tracker: Nike Will Reportedly Cut ‘Hundreds’ Of Employees ()
