Tech layoffs are hitting the industry hard, with Amazon.com Inc. being the latest company to make significant cuts. In an email sent to staff on Wednesday morning, it was revealed that “several hundred” roles would be eliminated in Amazon’s Prime Video and MGM Studios organization. Additionally, Twitch, the popular live-streaming platform owned by Amazon, announced that over 500 jobs will be cut.
The decision comes as part of Amazon’s efforts to enhance its ability to provide an exceptional entertainment experience to its global customers. Mike Hopkins, the Senior Vice President of Prime Video and Amazon MGM Studios, stated, “Throughout the past year, we’ve thoroughly evaluated every aspect of our business to ensure we can deliver groundbreaking movies, TV shows, and live sports in a personalized and user-friendly way. In doing so, we have identified areas where we can reduce or discontinue investments while increasing our focus on content and product initiatives that have the greatest impact.”
As a result of these strategic decisions, several hundred positions within the Prime Video and Amazon MGM Studios organization will be eliminated. These cuts reflect Amazon’s commitment to streamlining operations and further investing in projects that will maximize customer satisfaction and engagement.
Tech Layoffs in the Spotlight Again as 2024 Kicks Off with Xerox Job Cuts
In recent times, layoffs in the tech industry have become a subject of discussion. Amazon, one of the largest tech giants, witnessed waves of layoffs throughout 2023. Last January, the company announced 18,000 job cuts, and in March, they followed up with another 9,000. Later in November, Amazon made an announcement regarding several hundred job cuts associated with its Alexa smart assistant. As a part of their strategic shift towards generative AI, the company decided to reallocate resources.
Another significant player, Twitch, also made an announcement about layoffs. In an email shared as a blog post with its employees, Twitch CEO Daniel Clancy revealed that the company would be making just over 500 job cuts. In his message, he acknowledged the difficulty of sharing such news and expressed regret about having to reduce the headcount by 35% of the company’s workforce. The restructuring at Twitch is deemed necessary for rightsizing the organization.
The spotlight on tech layoffs continues to intensify as Xerox Holdings Corp. recently declared plans to cut 15% of its workforce. This move by Xerox was followed by Unity Software Inc., a prominent videogame software maker, announcing a reduction of approximately 25% of its employees, totaling around 1,800 individuals.
