July 22, 2024

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Amazon is shedding “several hundred” on Prime Video and Amazon MGM Studios

Amazon is shedding “several hundred” on Prime Video and Amazon MGM Studios

Amazon is laying off “several hundred” employees at Prime Video and Amazon MGM Studios.

“This is a difficult decision to make and I and my leadership team do not take it lightly,” the company's entertainment division president, Mike Hopkins, wrote in an email to employees on Wednesday. “It is difficult to say goodbye to the talented Amazonians who have made meaningful contributions on behalf of our customers, our team, and our business. Thank you for your dedication and work. To assist with the transition, we are offering packages that include severance payments, transitional benefits as applicable by country, and outplacement support.”

Hopkins says Amazon will begin notifying colleagues affected by the layoffs on Wednesday morning, and all employees in the Americas affected by the cuts will be notified this morning and in “most other regions by the end of the week.”

These layoffs are the first to hit the departments in the new year, but the departments have been affected on a renewed basis in the wake of the 2022 shutdown of Amazon's acquisition of MGM, as well as the economic downturn and writers and actors strikes. In 2023, approximately 18,000 purchases were made on Amazon as a whole.

See the entire Hopkins memorandum, submitted to diverse By Amazon, to the Prime Video and Amazon MGM Studios team below.

a team,

We've taken important steps toward our long-term vision of making Prime Video the premier entertainment destination for customers around the world, and I'm proud of everything we've accomplished as a team so far. Our investments in programming, marketing and technology have enabled us to expand our portfolio of blockbuster movies, hit TV series, live sports and the world's largest TVOD catalog along with over 650 partner channels worldwide and AVOD services including Freevee – all available in one destination, delighting customers all over the world. Through our acquisition of MGM, we increased our investments in theatrical films and drove growth in MGM+ and our third-party licensing and production companies.

However, at the same time, our industry continues to evolve rapidly and it is important that we prioritize our investments for the long-term success of our business, focusing relentlessly on what we know is most important to our customers. Over the past year, we've looked at nearly every aspect of our business with a focus on improving our ability to deliver more great movies, TV shows and live sports in a personalized, easy-to-use entertainment experience for our global customers. As a result, we have identified opportunities to reduce or discontinue investments in certain areas while increasing our investments and focusing on content and product initiatives that deliver the greatest impact. As a result of these decisions, we will be eliminating several hundred roles across the Prime Video organization and Amazon MGM Studios.

Today, we will begin reaching out to colleagues who have been affected by this role reduction. Notifications will be sent soon, and we expect all notifications in the Americas to be completed this morning (Pacific Time), and most other regions by the end of the week. We follow local processes, which may include consultation time with employee representative bodies, which may result in longer communication timelines in some countries.

This is a difficult decision and one that my leadership team and I cannot make lightly. It's hard to say goodbye to the talented Amazonians who have made meaningful contributions on behalf of our customers, our team, and our business. Thank you for your dedication and work. To assist with the transition, we offer packages that include severance payments, transitional benefits as applicable by country, and outplacement support.

Our prioritization of initiatives that we know will move things along, combined with our continued investments in programming, marketing and products, positions our business for a stronger future. Prime Video is one of the most popular benefits for Prime members, and one of the most widely used entertainment destinations in the world. I'm proud of the work you do every day on behalf of our clients, and I look forward to continuing to build our business for the future.

-Mike