Amazon said it will begin notifying impacted employees on Wednesday morning.
Amazon Prime Video
Amazon saw its largest job cuts in company history last year, but the layoffs aren't over yet. The company is laying off "several hundred" employees across Prime Video and Amazon MGM studios.
"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," Mike Hopkins, SVP of Prime Video and Amazon MGM Studios, said in an email to employees Wednesday morning that was shared with Business Insider. "As a result of these decisions, we will be eliminating several hundred roles across the Prime Video and Amazon MGM Studios organization."
Hopkins said that the company will begin notifying people impacted by the layoffs today, with all employees in the Americas notified by the end of the day and those in other regions notified by the end of the week. The Hollywood Reporter first reported the news.
The layoffs are the latest to hit Amazon, which has cut thousands of jobs over the past year as it sought cost savings across the board. Amazon's live-streaming platform, Twitch, is also planning to cut 35%, impacting 500 people, Bloomberg reported earlier this week.
The new reductions also appear to be the biggest being made to Amazon's entertainment business, which has been seen as a reliable spender in Hollywood as legacy giants pull back.
Studios head Jen Salke kept Hollywood happy by spreading heavily on pricey shows like "The Lord of the Rings: The Rings of Power" and spy series "Citadel," but the spending met with internal criticism when such shows were widely believed to miss their audience goals.
In April 2023, Amazon Studios (now Amazon MGM Studios) and Prime Video teams cut about 100 people — a tiny fraction of Amazon's 27,000 layoffs last year.
As part of its evaluation of its entertainment business, Amazon is evolving its free, ad-supported video service, Freevee, as it prepares to bring ads to rival service Prime Video. Freevee staff have been reassigned or told they'll add Prime Video duties, and over time, it's expected that Freevee will cease producing original content, company insiders said.
You can read Amazon's full memo to employees below.
Team,
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. Our investments in programming, marketing, and technology have enabled us to expand our selection of blockbuster movies, hit tv series, live sports, the world's largest TVOD catalog along with over 650 partner Channels worldwide, and AVOD services including Freevee – all available in a single destination, delighting customers around the globe. And, through our acquisition of MGM, we've increased our investments in theatrical films and driven growth in MGM+ and our licensing and third-party production businesses.
Yet, at the same time, 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. 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. 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. As a result of these decisions, we will be eliminating several hundred roles across the Prime Video and Amazon MGM Studios organization.
Today, we will begin to reach out to colleagues who are impacted by these role reductions. Notifications will be sent out shortly, and we expect all notifications in the Americas to be completed this morning (Pacific time), and most other regions by the end of the week. We are following local processes, which may include time for consultation with employee representative bodies, possibly resulting in longer timelines to communicate in some countries.
This is a difficult decision to make and one that my leadership team and I do not take lightly. It is hard to say goodbye to talented Amazonians who've made meaningful contributions on behalf of our customers, team and business. Thank you for your dedication and work. To help with the transition, we are providing packages that include a separation payment, transitional benefits as applicable by country, and external job placement support.
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. Prime Video is one of the most popular benefits for Prime members, and one of most widely used entertainment destinations in the world. I'm proud of the work you do every day on behalf of our customers, and I'm looking forward to continuing to build our business for the future.
-Mike
