- Amazon cut hundreds of jobs in its Prime Video and MGM studios groups to refocus spending.
- This extends recent layoffs across Amazon as it streamlines units to cut costs.
- Amazon prioritizes maximizing video profits after its costly MGM acquisition.
Cutting hundreds of jobs
Extending tech sector cuts, Amazon eliminated hundreds of positions across its Prime Video and MGM Studios entertainment divisions this week.
According to a memo from senior VP Mike Hopkins, the move aligns with refocusing investments on the most impactful movies, shows, and features.
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Reductions across various units
The reductions add to swelling job losses at Amazon in 2023, including thousands in its stores, cloud, and ad units, plus the entire Alexa smart home group. Amazon has shed over 27,000 workers since late 2022 as macro uncertainty continues forcing streamlining.
For video operations specifically, Amazon looks to prune less critical areas to sustain promising launches like the MGM licensing unit unveiled last year for distributing original content more profitably. The company also prepped adding ads to Prime Video against subscriber resistance.
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Amazon leans towards leaner operations
While boosting susceptibility to economic fluctuations, Amazon’s drive toward leaner operations emphasizes shareholder priorities. But the latest video cuts layer onto Prime fee hikes and erosion of Alexa teams to spark more customer frustration with Big Tech indifference.
It remains unclear whether refocused video investments can spark hits matching costly fantasy flops without the axed talent. But Amazon appears willing to irritate consumers to boost margins from the $8.5 billion MGM deal.
