Amazon Layoff Saga Continues, Studios And Prime Video Division Face Woes

Amazon continues to cut jobs from its various divisions. This time the employees from Amazon Studios and Prime Video division as part of the company's effort to streamline the businesses are facing the woes as per a Business Today report.

The layoffs will affect around 100 employees, or about 1 per cent of the division's workforce of 7,000, according to an anonymous source familiar with the matter. The move follows a string of cost-cutting measures implemented by several tech and entertainment companies in response to challenging economic conditions.

Culver city-based film and TV production arm of Amazon, Amazon Studios supplies the company's streaming service, Prime Video. The platform has streamed popular shows such as The Marvelous Mrs Maisel, The Lord of the Rings: The Rings of Power, and the new spy thriller Citadel.

Last year, the company expanded its entertainment business with the acquisition of MGM Studios for $8.5 billion, which is known for films such as the Creed franchise.

As per the report, in one of its statement, Amazon said that it had been closely monitoring economic conditions and its organisational needs, leading to a decision to adjust resources. "As a result, a small number of roles will be eliminated on some teams," the statement read.

Amazon Studios is redirecting its focus to film arm division for theatrical releases, including recent movies such as Air, featuring Ben Affleck and Matt Damon. However, the division has not been immune to the company's cost-cutting measures, with the recent elimination of some roles.

Earlier this year, Amazon laid off 18,000 employees, followed by another 9,000 job cuts announced in March. The second round of job cuts impacted divisions including Twitch and on Wednesday the company also announced that it would be winding down its Halo.

The job cuts at Amazon come after several layoffs across the tech and entertainment sectors. Companies such as Meta, Google, and Roku have all recently reduced their workforces. Even the entertainment giant, Walt Disney Co., is in the process of cutting 7,000 jobs to save $5.5 billion in costs.

According to Ray Wang, CEO of Constellation Research, "Everyone's tightening their budgets. This is more about adjusting for where people believe economic conditions will be."