Amazon Lays Off 100 Employees in Gaming Division: Restructuring for Long-Term Success
In a strategic move to streamline operations and achieve its long-term goal of becoming a leading game publisher, Amazon has laid off over 100 employees in its gaming division. The restructuring affects teams across Prime Gaming, Game Growth divisions, and the company’s San Diego studio. Despite these layoffs, Amazon remains committed to investing in in-house game development, expanding its Montreal studio, and growing its third-party publishing efforts.
Layoffs and Restructuring
On April 4, 2024, Amazon Games VP Christoph Hartmann announced the layoffs in a memo to staff. The job cuts impacted more than 100 people across Prime Gaming and Game Growth divisions, as well as the company’s San Diego studio. While some employees will be reassigned to other projects, affected individuals will receive severance pay, health insurance benefits, and paid time to conduct their job search.
Amazon’s Long-Term Goal
Amazon’s ultimate aspiration is to establish itself as one of the world’s leading publishers of high-quality gaming content that captivates players for years to come. To achieve this, the company plans to leverage a combination of internal game development, third-party publishing, and the provision of captivating shows and content.
Continued Investment in Game Development
Amazon is unwavering in its commitment to in-house game development, with a focus on key areas. The Irvine, California-based team will continue to grow and work on the company’s MMORPG New World. Additionally, Amazon intends to expand the size of its studio in Montreal to commence full production of an unannounced game. Furthermore, the company plans to bolster its third-party publishing efforts, exemplified by its recent agreement with NCSoft to distribute Throne and Liberty.
Recent Layoffs and Leadership Changes
In March 2024, Amazon CEO Andy Jassy announced job cuts affecting approximately 9,000 individuals across AWS, PXT, advertising divisions, and Twitch. This followed a previous round of layoffs resulting in the elimination of 18,000 positions. Moreover, in January 2024, John Smedley, a visionary behind EverQuest, stepped down as the head of Amazon Game Studios after six years at the helm.
Amazon’s layoffs in its gaming division are part of a broader restructuring effort aimed at achieving the company’s long-term goal of becoming a leading game publisher. Despite these layoffs, Amazon remains committed to investing in in-house game development, expanding its Montreal studio, and growing its third-party publishing efforts, demonstrating its dedication to the gaming industry.