Amazon to lay off several hundred staff in Prime Video, Studios

Amazon layoffs 2024, Amazon layoffs Prime Video, Amazon layoffs Studios: Amazon will lay off several hundred employees in its streaming and studio operations, it said in an internal note on Wednesday as companies extend their massive job cuts over the past two years into 2024.

The staff facing exit at Prime Video and Amazon MGM Studios in the Americas will be informed on Wednesday and in most other regions by the end of the week.

The online retail behemoth last year cut more than 27,000 jobs as part of a wave of U.S. tech layoffs after the industry hired heavily during the pandemic.

"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, senior vice president of Prime Video and Amazon MGM Studios, told employees in a note seen by Reuters.

The company has spent aggressively in recent years to bolster its media business, including the $8.5 billion deal for MGM and around $465 million on the first season of "The Lord of the Rings: The Rings of Power" on Prime Video in 2022.

It is also set to roll out ads on Prime Video as well as a more expensive ad-free subscription tier in some market, similar to moves by rivals Netflix NFLX.O and Walt Disney DIS.N.

After widespread job cuts in 2022 and 2023, many companies are now targeting select projects and divisions as they re-priorities their resources.

Amazon recently cut some jobs at its Alexa voice assistant division, while Microsoft (MSFT.O) removed some staff at its LinkedIn professional network.

Amazon's Twitch service is set to lay off 500 employees, or about 35% of its workforce, according to a media report on Tuesday.

Its shares, which surged more than 80% last year, were up 1.5% in afternoon trading.