Lights, Camera, Cut: Amazon Streamlines Workforce
Amazon is set to undergo another round of layoffs, affecting hundreds of employees in its streaming service and studio division, as reported by The Information. The news was communicated through an email from Mike Hopkins, overseeing Prime Video and Amazon MGM Studios, according to Commercial Observer.
Hopkins stated in the email, “Our industry continues to evolve quickly, and it’s important that we prioritize our investments for the long-term success of our business while relentlessly focusing on what we know matters most to our customers.” He mentioned identifying opportunities to cut or discontinue investments in certain areas while increasing focus on impactful content and product initiatives, resulting in the elimination of several hundred roles across the Prime Video and Amazon MGM Studios organization.
This move follows Amazon’s previously reported layoffs of around 27,000 employees in 2022 and 2023. Twitch, the live streaming platform owned by Amazon, also faced significant cuts, laying off about 500 employees, approximately 35% of the division’s staff.
The decision comes amid a broader trend of restructuring within Amazon and other tech companies. The recent cuts follow a heyday of studio and soundstage development and expansion in Greater Los Angeles. Companies like Amazon Studios’ landlord Hackman Capital Partners and the Blackstone-backed studio arm of Hudson Pacific Properties played key roles in this expansion.
The media and tech industry’s cutbacks in L.A. come after a seemingly unrestrained period of corporate growth, including Amazon Studios’ acquisition of MGM for $8.45 billion meant to strengthen its position against other streaming companies. Google has also made significant cuts, with recent decisions to reduce real estate sizes, exemplified by the abandonment of plans for the former Westside Pavilion office development by Hudson Pacific Properties.
