Amazon Games Division Faces Second Round Of Layoffs, 180 Jobs Cut
Amazon.com has initiated another round of layoffs, signaling a broader restructuring within the company. The online retail and digital streaming giant has cut approximately 180 jobs in its games division, marking the second wave of layoffs in less than a week.
The decision was communicated through an internal email from Christoph Hartmann, the vice president of Amazon Games, on 13 November, as per a Reuters report.
Hartmann stated in the email that following an initial restructuring in April, it became evident that a more focused allocation of resources is necessary to propel the business forward. The restructuring aims to concentrate efforts on areas with the highest potential for growth. This move follows a similar decision in April when around 100 jobs were eliminated in the games unit.
The games division, responsible for offering downloadable versions of various video games on a monthly rotation, as well as managing Twitch channels and other services, remains a key focus for Amazon.
This decision comes in the wake of job cuts in other divisions of Amazon, including the streaming music and podcast division. Additionally, a small number of positions in the human resources unit, known as People Experience and Technology (PXT), have also been affected.
Prime Gaming, a perk included in the USD 139 annual Prime membership, is slated to receive increased attention. Hartmann, in his mail, emphasised that the company is responding to customer preferences by refining the Prime benefit to focus more on delivering free games every month. Prime Gaming complements the membership, which already includes free shipping and streaming video services.
Despite the recent challenges and organizational changes, Amazon has reported robust third-quarter net income, surpassing analysts' estimates. However, the company has been part of a broader trend in the tech industry, having cut over 27,000 roles in the past year.
