Amazon Cuts Hundreds of Jobs at Twitch and Film Studios Division


In a move to streamline its operations and cut costs, Amazon has announced job cuts across two of its business units: streaming platform Twitch and its film and television studios division. The layoffs will affect “several hundred” roles at Prime Video and Amazon MGM Studios, according to an internal note shared by the company. Additionally, Twitch, the popular video game streaming company owned by Amazon, is laying off 500 workers as part of ongoing cost-cutting efforts.


Amazon’s Strategic Decision

Amazon Cuts Hundreds of Jobs at Studios and Twitch - The New York Times

The job cuts come as Amazon aims to optimize its investments and focus on content and product initiatives that deliver the most impact. Mike Hopkins, the senior vice president of Prime Video and Amazon MGM Studios, stated in an internal memo that the company is identifying opportunities to reduce or discontinue investments in certain areas while increasing its investment in content and product initiatives. This strategic decision will enable Amazon to strengthen its position in the entertainment world and enhance the content library of its streaming service, Amazon Prime Video.


Twitch’s Layoffs and Cost-Cutting Measures


Twitch CEO Dan Clancy confirmed the layoffs in a message to the company’s users and staff, acknowledging that it was an incredibly difficult decision. Over the past year, Twitch has been working on building a more sustainable business to ensure its long-term viability. Despite previous efforts to cut costs and improve efficiency, it became apparent that the organization was still larger than necessary given the current size of the business. The recent layoffs are part of Twitch’s ongoing efforts to align its workforce with its business needs.


Affected Employees and Support Offered


Amazon and Twitch are committed to supporting the affected employees during this transition period. The company will provide separation payments, transitional benefits based on country, and external job placement support. This comprehensive package aims to assist employees in finding new opportunities and ease the financial impact of the layoffs.


Challenges Faced by Twitch


The layoffs at Twitch reflect the ongoing challenges the company is facing. While specific financial results for Twitch are not publicly disclosed by Amazon, the recent departures of several top executives indicate the need for organizational adjustment. The company has seen the departure of key personnel, including the chief product officer, chief customer officer, chief content officer, and chief revenue officer. These changes suggest a strategic shift within Twitch to align the organization with its current business size and objectives.


The Impact of the Pandemic on Tech Firms

Amazon cuts hundreds of jobs at Twitch, Prime Video and MGM, Telecom News,  ET Telecom

Last year, many major tech firms faced the need for layoffs as they adjusted to the changing revenue landscape brought about by the pandemic. Although layoffs tapered off in the second half of the year, some companies, including Amazon and Google, made targeted cuts. Other tech firms, such as Spotify, Etsy, and Dataminr, also implemented cost-cutting measures. The aim was to adapt to the new economic realities while maintaining long-term sustainability.




Amazon’s decision to cut jobs at Twitch and its film and television studios division demonstrates the company’s commitment to optimizing its operations and focusing on key areas that drive the most impact. By streamlining its workforce and reallocating resources, Amazon aims to strengthen its position in the entertainment industry and enhance the content library of Amazon Prime Video. While these layoffs may present short-term challenges, they contribute to the long-term sustainability of the organization. Amazon and Twitch are dedicated to assisting affected employees in finding new opportunities and providing support during this transition period.


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