Tech giant Amazon has made headlines once again with its announcement of a second round of layoffs in its gaming divisions, impacting over 180 employees. This move comes on the heels of recent cutbacks in the company’s music streaming section, as Amazon aims to restructure and streamline its operations.
In an effort to adapt to economic uncertainties, Amazon has initiated a restructuring process that includes layoffs within its gaming divisions. The decision follows closely on the heels of layoffs within the music streaming section, revealing Amazon’s commitment to making expense reductions amid lingering recessionary concerns.
Impact on Amazon’s gaming teams
The layoffs announced by Amazon will affect several of its gaming teams, most notably the Crown Channel and Game Growth divisions. The Crown Channel is known for broadcasting original programming on Twitch, including popular shows like “Potluck” and “Screen Invaders,” which features a competitive Candy Crush Saga tournament.
Meanwhile, the Game Growth division, a program aimed at revolutionizing global game developers’ marketing strategies, has also been axed. These layoffs were communicated to affected employees via an email from Vice President of Amazon Games, Christoph Hartmann.
Amazon’s perspective on the layoffs
While these layoffs are undoubtedly distressing for the affected employees, Amazon Games has stated that these changes are necessary to refocus their efforts on delivering outstanding gaming experiences for players both now and in the future. The company is committed to providing personalized support for impacted employees, which includes assistance with health insurance coverage, outplacement services, severance compensation, and more.
The latest wave of layoffs adds to Amazon’s ongoing workforce reduction efforts. Since January, the company has eliminated more than 27,000 jobs, with the initial wave cutting 18,000 positions and a subsequent announcement in March indicating another 9,000 job cuts across various divisions, including Twitch, advertising, HR, and Amazon Web Services (AWS).
In April of this year, Amazon let go of over 100 employees from its gaming departments, encompassing Prime Gaming, Game Growth, and Amazon Games. These cuts have raised concerns among industry professionals and observers, who are beginning to question the stability of careers in the gaming industry.
The frequent layoffs within Amazon’s gaming divisions have contributed to growing apprehension within the gaming industry regarding employment stability. 2023 has demonstrated that even major industry players are not immune to substantial layoffs. The trend of recurring layoffs within the sector has led to a sense of insecurity among industry professionals.
