amazon It doesn’t stop with layoffs. After learning that Twitch would cut 35% of its staff, it is now known that Prime Video and MGM will also suffer losses. The technology giant announced a staff reduction that affects its streaming video and entertainment division.
In accordance with The Hollywood Reporter, Amazon to lay off hundreds of employees working at Prime Video and MGM. The company sent an internal email to its staff warning about the staff cut, which it defines as a strategic decision. Layoffs will affect workers in all regionsalthough unlike Twitch, Amazon did not specify the exact figure.
“Over the past year, we have looked at nearly every aspect of our business with an eye toward improving our ability to deliver even more innovative movies, TV shows and live sports in a personalized, easy-to-use entertainment experience for our global customers.” ”stated Mike Hopkins, vice president of Prime Video and Amazon Studios. “As a result, we have identified opportunities to reduce or discontinue investments in certain areas while increasing our investment and focusing on content and product initiatives that generate the greatest impact.”
Hopkins confirmed that “several hundred positions” at Prime Video and MGM Studios will be eliminated. Affected employees will receive notification throughout the week. The manager said that “it is a difficult decision” that was not made lightly. Just like other companies. The layoffs come a year after Amazon and other technology companies made massive cuts to their workforce in order to stay afloat.
Amazon lays off employees just days after adding ads to Prime Video
Amazon, like other companies, stated that layoffs are part of an adaptation process. “Our industry continues to evolve rapidly and it is important that we prioritize our investments for the long-term success of our business, while relentlessly focusing on what we know is most meaningful to our customers,” Hopkins said.
The technology giant invested $16.6 billion in content for Prime Video during 2022. The first season of The Lord of the Rings: The Rings of Power cost $465 million, four times what HBO paid for each season of Game of Thrones. In addition to this, Amazon signed a contract in which agrees to pay $1 billion per year to the NFL in exchange for the rights to broadcast Thursday night games.
The million-dollar investment has paid off for the company. A Kantar study published in 2023 shows that Amazon Prime Video surpassed Netflix and Disney+ in Spain. The exclusive series and the perception of quality/price were enough to capture 61.5% of new subscriptions. According to the firm, one in 10 users came from a competing service.
Despite this, the income still does not satisfy the managers, who are planning a move that could generate millions of dollars for the company. The Prime Video subscribers will start seeing ads starting January 29. According to Amazon, this measure will allow it to invest in original content for longer.
The only way to avoid it will be pay an additional fee of 3 dollars to eliminate advertising, something that many will not like.