Amazon plans to lay off "several hundred" employees from Prime Video and Amazon MGM Studios

The Prime Video logo (Image via Amazon)
The Prime Video logo (Image via Amazon)

Amazon has announced its recent plans to streamline its entertainment division, which consists of the ever-growing Prime Video, which is competing with the market's best streaming platforms head-to-head, and MGM Studios, which is also an integral part of Amazon's entertainment division.

With a lot of new productions and an ever-growing focus on content, the company’s entertainment chief, Mike Hopkins, announced in an email to staff on Wednesday, January 10, that the company was getting rid of several of the divisions in the company, which will also directly impact hundreds of employees working there.

An elaborate email addressed to the team, which has also been acquired by Variety, expressed the reasoning behind the layoffs, which could go up to 500, and the subsequent plans with the fired employees.

Why is Amazon laying off hundreds of employees?

While layoffs are nearly always about budgeting, Amazon's entertainment chief, Mike Hopkins, explained that Amazon also plans to change the focus of certain areas, whose budget will probably be put into something that the company currently considers more important, like content creation.

In the email addressed to the team, Hopkins explained:

"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....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."

He further added:

"As a result of these decisions, we will be eliminating several hundred roles across the Prime Video and Amazon MGM Studios organization."

This drastic step will be implemented immediately, with Hopkins claiming that employees from the Americas will get to know their fate by today itself. As for the different regions, it should be done by the end of the week.

Hopkins also promised in the email that the company would help out the laid-off employees with various types of support. He wrote in the email:

"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."

This drastic step will reportedly help the company go even higher in the charts of content production throughout the year in every region. As of 2023, Prime Video was among the leading streaming services in the world, falling behind only Netflix in terms of subscriber count.

It will try to make 2024 an even better year for the subscribers.

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Edited by Dev Sharma
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