Following a year of job cuts across the tech industry, Amazon is planning to lay off hundreds of employees in its Prime Video and MGM Studios divisions by the end of the week. The cuts are part of an effort to improve the company’s entertainment offerings and make it more competitive in the streaming market.
Amazon has spent heavily on its media business in recent years, including the $8.5 billion acquisition of MGM. However, some of its investments, such as the “The Lord of the Rings: The Rings of Power” series on Prime Video, have been expensive and not met with the critical acclaim the company had hoped for. The company is also facing stiff competition from other streaming services, such as Netflix and Disney+.
The job cuts are expected to impact employees across a variety of departments, including production, development, and marketing. Amazon has not said how many employees will be laid off, but sources say the number could be in the hundreds.
The cuts come as Amazon is facing increasing pressure to improve its profitability. The company’s stock price has fallen sharply in recent months, and some investors are calling for Amazon to cut costs.
The job cuts are likely to have a significant impact on the employees who are laid off. Many of them will have difficulty finding new jobs in the current economic climate. The cuts could also damage Amazon’s reputation as a good place to work.
However, Amazon executives say the cuts are necessary to ensure the long-term success of the company’s entertainment business. They believe that the cuts will make Amazon more efficient and competitive in the streaming market.
It remains to be seen whether the job cuts will achieve their desired outcome. However, one thing is clear: Amazon is serious about improving its entertainment offerings and making its streaming business more profitable.