Mass layoffs at Amazon Prime Video and MGM Studios

In a move that will impact the tech industry significantly, Amazon has announced major layoffs across its Twitch, Prime Video and MGM Studios divisions. The changes are slated to affect around 500 employees, with additional cuts impacting several hundred more.

• Breaking the News: The news was disclosed by Mike Hopkins, Senior Vice President, in the form of an email. The reduction in workforce is reportedly in line with the company's strategic shift to focus on content and product initiatives that promise more significant impacts.

• Post-Layoff: Amazon is slated to provide transition support to the affected workers, including separation payments and transitional benefits. Following this strategic realignment, Hopkins remains optimistic about the future strength and positioning of the business.

• Funding History: Amazon's $8.5B acquisition of MGM in 2022 resulted in the launch of Amazon MGM Studios Distribution, aimed at licensing Amazon Originals and other titles to streaming services and cable companies for increased revenue generation.

• One of Many: These layoffs are the latest in a series that has seen significant cuts across various Amazon divisions in 2023, including the Alexa division, gaming sector, Amazon Stores businesses, AWS cloud unit, and advertising arm. By the end of 2023, Amazon had laid off a total of 27,000 jobs, accounting for 8% of its corporate workforce. This marks the most significant layoff in Amazon's history.

These cuts have been announced just weeks before Prime Video's plan to introduce ads on its streaming service. This addition means that Prime customers, already paying $14.99 per month, will need to pay an extra $3 per month to remove the ads.