Amazon continues its job cuts in Prime Video and Amazon MGM Studios, dismissing hundreds of employees. The company confirmed a corresponding media report on Wednesday but remained vague about specific numbers.
The affected employees in North and South America have already been informed, while those in other regions will be notified by the end of the week. Amazon stated that it has "identified opportunities to reduce or discontinue investments in certain areas." At the same time, investment activity will be increased in other areas.
The e-commerce giant massively hired personnel during the pandemic but experienced a workforce reduction of over 27,000 employees in 2023. In recent years, Amazon has aggressively invested in its media business, including the acquisition of the film studio MGM for 8.5 billion dollars.
One of the largest investments was the adaptation of the first season of "The Lord of the Rings: The Rings of Power", which cost Amazon an impressive 465 million dollars in 2022. The second season has already been filmed, but an exact release date is still pending.
Amazon remains unaffected by layoffs and sees a 1.24% increase in NASDAQ trading on Wednesday, reaching $153.24. The company's decision to reduce investments in certain areas appears to be positively received by investors.
However, this is not the first time that Amazon has cut positions in its media business. In recent years, the company has conducted several waves of layoffs, including the closure of its Amazon Game Studios in 2018. These developments could indicate that Amazon is beginning to reassess its media strategy and potentially shift its focus to other areas.
The layoffs at Prime Video and Amazon MGM Studios are further evidence that the e-commerce giant continues to search for a balance between investments and savings in its diversified business.
While the company is reducing positions in some areas, other areas remain unaffected by its investments. It remains to be seen how this strategy will impact Amazon's success in the media industry.
