Amazon Cuts More Jobs in its Gaming Division

Amazon has implemented a second round of job cuts in its games division, affecting approximately 180 positions. This move is part of a broader restructuring within the company, as revealed in an email dated November 13 from Christoph Hartmann, Vice President of Amazon Games, reports Reuters.

The latest layoffs, which began on Monday morning, follow an initial restructuring in April. “After our initial restructuring in April, it became clear that we needed to focus our resources even more on the areas that are growing with the highest potential to drive our business forward,” Hartmann wrote in the email.

This reduction represents the second cut to the division this year, with about 100 jobs eliminated in April. The decision aligns with Amazon’s strategic shift towards prioritizing its Prime Gaming service. Prime Gaming, part of the company’s annual Prime membership, offers free games every month, Twitch channels, and other services. “We’ve listened to our customers and we know delivering free games every month is what they want most,” Hartmann explained, emphasizing the company’s focus on refining its Prime benefit.

In addition to the games division, Amazon also began reducing positions in its streaming music and podcast division last week, as well as a small number of jobs in its human resources unit known as People Experience and Technology (PXT), according to unnamed sources familiar with the matter.

Despite these cuts, Amazon’s third-quarter net income exceeded analyst estimates, and the Seattle-based company forecasted revenue for the final quarter of the year roughly in line with expectations. However, over the past year, Amazon has cut more than 27,000 roles, joining a wave of tech layoffs in the United States as companies adjust their workforce sizes post-pandemic. It’s not just in the U.S., Canadian tech companies are also slashing roles.

“I recognize that this is the second time this year that you are hearing about org-wide team changes and seeing colleagues go, so let me be very clear when I say this: I remain confident in our future,” stated Hartmann’s email, acknowledging the impact of these changes on the team.