Amazon Announces Layoffs Across Prime Video, MGM Studios, and Twitch

Amazon is laying off several hundred employees across its Prime Video and MGM Studios divisions, with Mike Hopkins, who oversees those units, informing staff of the job cuts in a memo. The layoffs come as the company moves to prioritize its investments for long-term success, focusing on content and product initiatives that deliver significant impact.

The cuts also affect Amazon's Twitch livestreaming unit, where 500 jobs are being cut. Over the last year, Twitch has made significant cost-cutting decisions to build a more efficient business and plans to shut down its operations in South Korea. This announcement marks a continuation of Amazon's ongoing workforce reductions, following a year of mass layoffs that began in 2022. 

Amazon has also announced that Prime Video users will soon start seeing ads on movies and TV shows, with an additional fee for ad-free viewing. This move aligns with Amazon's larger strategic adjustments and investment priorities in its entertainment offerings. Amazon's acquisition of MGM has expanded its content portfolio, and the company has launched Amazon MGM Studios Distribution to license its original films and TV shows to third-party media outlets, reinforcing its position in the industry.