Job cuts at Twitch, MGM, and Prime Video as Amazon reduces workforce

Amazon is planning to lay off employees at its subsidiaries Twitch, Prime Video, and MGM studios. The streamer, Twitch, is set to cut over 500 workers, which is about a third of its workforce, as confirmed by CEO Dan Clancy. Additionally, several hundred employees at Prime Video and film studio MGM will also be affected. Despite recording significant profits, Amazon terminated more than 27,000 staff members in 2023. It is worth noting that Amazon acquired Twitch in 2014 for $970 million. The decision to reduce headcount was communicated by Mr. Clancy in an email to the employees, where he stated that the aim was to create a more sustainable business. He further mentioned that Twitch disbursed $1 billion to streamers in 2023, but the company's growth predictions were conservative. Amazon's earnings report for the July to September period indicated a profit of $9.9 billion—significantly up from $2.9 billion in the same period in 2022. Senior Vice President Mike Hopkins, in an email to Prime Video and Amazon MGM Studios staff, acknowledged the difficulty of the decision. He outlined the company's plan to discontinue investments in certain areas while increasing focus on content and product-related initiatives that generate the most impact. The job cuts will affect employees both in the US and internationally. Amazon purchased MGM Studios, which has a century-long history, for $8.45 billion in 2021. Furthermore, the company recently announced the introduction of advertisements on Prime Video, starting from February 5, 2024. These workforce reductions at Amazon are part of a larger trend in the tech industry, as it faced significant job cuts in 2023. The sector experienced a 73% increase in job reductions compared to the previous year, according to career consultancy Challenger, Gray & Christmas.