Business

Amazon to lay off hundreds of Prime Video and MGM Studios employees

Amazon Logo (European Press)

Amazon is cutting hundreds of jobs across its divisions High quality video and Metro-Goldwyn-Mayer.

Amazon said last month that users Prime Video in the United States They will see ads in movies and TV shows starting on January 29, with announcements dated in September.

Prime members who want to keep movies and TV shows ad-free must pay Adds $2.99 ​​per month.

Mike Hopkins, senior vice president of Prime Video and Amazon MGM Studios, said in a memo to employees that the company is investing more in its most impactful areas while staying away from others. .

The Amazon Prime Video logo at an event in Mumbai, India (Reuters/Francis Mascarenhas)

Amazon is laying off thousands of jobs following a hiring surge during the pandemic. In March this year, Amazon announced plans to lay off 9,000 employees. That doesn’t include the 18,000 employees the tech giant said it would lay off in January 2023.

Employees who leave Amazon Prime will receive severance and other benefits, such as help finding jobs.

In May, Amazon said it would release its original movies and TV shows, such as “The Marvelous Mrs. Maisel,” to media outside of its Prime Video service for the first time.

Amazon logo at the Trapajaran logistics center in Spain (REUTERS/Vincent West)

The content will be licensed through a new division called Amazon MGM Studios Releases, which expands the number of titles currently offered by MGM Studios in Hollywood. In 2022, the e-commerce giant turned media giant completed its $8.5 billion acquisition of MGM, which has more than 4,000 movies and 17,000 TV episodes.

Twitch is a streaming service used by millions of people around the world (Unsplash)

twitchThe video game streaming platform acquired by Amazon for nearly $1 billion a decade ago will lay off employees 500 employees At the same time, the company is trying to make this extremely expensive unit profitable.

Twitch CEO Dan Clancy said in an email to employees that even with cost cuts and efficiencies, the platform “remains far larger than the scale of our business requires.”

“For some time, the organization has been sized based on where we optimistically expected our business to be in three or more years, rather than where we are today,” Clancy wrote.

Amazon acquired Twitch Interactive in 2014 for $970 million When I was looking for a way to participate in the growth of video games as an online spectator sport.

Twitch is a multi-channel online network created for a generation that grew up playing video games and enjoy watching some of the best players in the world in the same way that many people watch professional sports.

Last month, San Francisco-based Twitch said it would exit the South Korean market due to expensive network costs. Clancy said at the time that the company paid network fees to South Korean internet operators ten times more than in most other markets. He did not provide specific numbers to support that claim.

“As you all know, we have worked hard over the past year to run our business as sustainably as possible,” Clancy wrote. “Unfortunately, we still need to right-size the company, and I’m sorry to say that We are taking the painful step of laying off more than 500 people at Twitch.”

(Information from the Associated Press)

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