Amazon has laid off over 100 employees from its gaming division as part of its ongoing restructuring efforts. This significant move has reportedly affected multiple studios, including Amazon Game Studios, Amazon Game Tech, and Twitch. The company stated that this decision was made to prioritize its investment in new games while also providing support for existing franchises. The layoffs have sparked conversations across the industry about the future of Amazon’s gaming ambitions and the impact it could have on the industry as a whole.
Amazon is laying off over 100 employees directly involved in its game production. The layoffs will affect gaming divisions including Prime Gaming, Game Growth, and Amazon Games’ San Diego studio. A memo from gaming VP Christoph Hartmann explains that the cuts come after the company considered ongoing projects against its “long-term goals.” The company is also reassigning workers to projects that fit its “strategic focus.” Meanwhile, the teams in Irvine and Montreal will continue to grow, and Amazon’s publishing efforts will expand. Laid off employees will receive severance pay, health benefits, and paid time to find new jobs. Amazon’s game development efforts have had mixed results, with the company currently only offering New World. Its previous attempt at a free-to-play shooter, Crucible, was short-lived, and there has been turmoil at the San Diego location. The layoffs come just weeks after Amazon’s plans to cut 9,000 positions, including some at Twitch, were announced. The company is looking to reduce costs overall while navigating global economic uncertainty and the pandemic’s effects.
As Amazon continues to expand into various industries and compete with other tech giants, it seems the company’s gaming division is having a rough time. With the recent layoffs of over 100 employees, it’s clear that Amazon is reevaluating its strategy and making adjustments to stay competitive. Only time will tell how these changes will impact the company’s gaming ventures, but one thing is for certain – the gaming industry is a tough one to crack and requires more than just deep pockets. We’ll keep an eye on Amazon’s next move and how it decides to navigate the gaming world going forward.
