Amazon Fires 100s Of Employees!

Amazon has recently announced that it is cutting hundreds of staff in its Prime Video and MGM Studios divisions due to a repositioning plan as it puts its focus on content and product strategies that generate the greatest effects.

A memo sent by Mike Hopkins, Senior Vice President of Prime Video and Amazon MGM Studios, to the staff on Wednesday says that the company has begun contacting the affected workers in the US and will reach out to most of the region by the end of this week.

Hopkins said the company has “pinpointed areas where it can decrease or eliminate investments,” while also increasing its investment and emphasis on content and product initiatives that have the greatest impact.

The layoffs follow the completion by Amazon of a $8.5 billion deal to acquire MGM in March 2022, whereby it got its hands on an extensive collection of movies and TV shows that could be included in its streaming platform. The company also has Twitch, a live game streaming platform, which has been rumored to have fired about 35 percent of its workers, or approximately 500 employees, earlier this week.

Amazon’s decision to consolidate its video entertainment divisions can be seen in the context of growing onslaught from the competitors such as Netflix, Disney+, and HBO Max that have been investing huge amounts of money into original and exclusive content to attract and hold on to subscribers.

Amazon has not revealed the actual number of employees who will be affected by the layoffs but announced that these employees will receive transitional benefits, separation payments and support in finding new jobs outside the company.