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Ahead of its ad tier launch, layoffs are coming to Prime Video.
Top line
Today, Mike Hopkins, svp at Prime Video and Amazon’s MGM Studios, announced in a memo sent to employees that the company would cut several hundred jobs, Adweek has confirmed.
Between the lines
In the memo, which Amazon shared with Adweek, Hopkins noted that the company had identified opportunities to reduce or discontinue investments in certain areas while increasing investments in the areas that provide the most impact, leading to the company “eliminating several hundred roles across the Prime Video and Amazon MGM Studios organization.”
“This is a difficult decision to make and one that my leadership team and I do not take lightly,” Hopkins wrote. “It is hard to say goodbye to talented Amazonians who’ve made meaningful contributions on behalf of our customers, team and business. Thank you for your dedication and work.”
Hopkins added that the company will prioritize initiatives that “move the needle,” along with continued investments in programming, marketing and products that position the business for an “even stronger future.”
Thus far, the distribution of the cuts across Prime Video and MGM Studios is unclear.
In addition to the cuts hitting Amazon’s video division, Bloomberg recently reported Twitch was laying off 500 employees, or about 35% of its staff.
Bottom line
The layoffs are just the latest example of consolidation in the streaming and TV industry and come just weeks ahead of Prime Video launching its ad tier, which rolls out on Jan. 29 to all Prime Video subscribers.
Experts recently told Adweek there’d likely be more TV consolidation in the year ahead as streamers look to maximize profitability and deliver new offerings to price-pinched consumers.
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