Major layoffs hit Amazon Prime Video and Amazon MGM Studios division, according to an internal memo from the company. So far, there’s no word on music division cutbacks.
Amazon will cut hundreds of jobs across its Prime Video and Amazon MGM Studios divisions, revealed in an internal memo from the company. The layoffs were announced today (January 10) by division leader Mike Hopkins, with the job cuts affecting a relatively small percentage of those in the divisions.
“We’ve taken significant steps towards our long-term vision of making Prime Video the first-choice entertainment destination for customers worldwide, and I’m proud of everything we’ve accomplished as a team to date,” wrote Hopkins. “Our industry continues to evolve quickly, and 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.”
“Our prioritization of initiatives that we know will move the needle, along with our continued investments in programming, marketing, and product, positions our business for an even stronger future,” adds Hopkins, who notes that Prime Video continues to reign as the most popular benefit for Amazon Prime subscribers.
Workers impacted by the layoffs in America will be contacted today, while employees living in other regions will be contacted by the end of the week. Amazon will provide packages to laid-off employees, including separation payment and transitional benefits as they apply to the employees’ external job placement support.
The changes come as Prime Video spent big on content that ultimately underperformed — namely, “The Lord of the Rings: The Rings of Power,” and “Citadel.” Meanwhile, the company is enjoying the success of “Reacher” Season 2, which premiered in December and rapidly became the most-watched title of 2023.
The company has already had significant layoffs in 2023, with Amazon announcing in January it would cut 18,000 jobs, and another 9,000 in March. Those layoffs affected workers in the company’s cloud computing unit AWS, its advertising division, streaming platform Twitch, and PXT organizations that include functions such as human resources.
Prime Video laid off around 100 people last year, which represented about 1% of the company’s 7,000-employee workforce.