Highlights:
- Amazon has recently laid off 180 employees from its video game division
- The layoffs affected teams such as Game Growth and the Crown Channel, an original program on Twitch
- The decision was made by Amazon Games VP Christoph Hartmann as part of a strategic realignment
- Amazon Games continues to evolve and focus on its core gaming projects
- This follows Amazon’s previous layoffs of 27,000 employees earlier in the year
Introduction: Amazon’s Layoffs in the Video Game Division
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As it moves away from supporting third-party games and streaming services, Amazon has announced significant layoffs in its gaming division. Amazon intends to reorganize its Games offshoot with an emphasis on creating its own games, such as Throne and Liberty and Blue Protocol, as well as upcoming Tomb Raider and Lord of the Rings titles, as first reported by Reuters and CNBC.
This change will have a major negative impact on employment, eliminating over 180 positions, including those involved in the company’s Crown Channel and Game Growth initiatives. The goal of these programs was to support content and game developers on a variety of platforms.
Notably, this is the second major wave of layoffs to hit Amazon Games in 2023.
Earlier in the year: Amazon’s Layoffs
The company cut an additional 100 jobs as part of a wider structural shake-up. According to an email sent to employees in November, Vice President of Amazon Games Christoph Hartmann stated, “After our initial restructuring in April, it became clear that we needed to focus our resources even more on the areas that are growing with the highest potential to drive our business forward.”
“I am aware that this is tough news and that many people will be affected. Having to say goodbye to coworkers is never pleasant. The leadership team took its time in coming to this decision; it was the product of careful thought and future planning.
“With weekly content on Crown Channel, the teams have been venturing into new territory, and we are proud of the work they have been doing to help publishers reach new audiences through Game Growth.” However, it became evident from a more thorough analysis of our companies that we must concentrate our resources and efforts in order to provide players with fantastic games both now and in the future.
Employees were allegedly told about the job cuts on Monday, but according to Reuters, the process started earlier in November, and layoffs had already affected a number of Amazon’s other businesses, such as its podcast and music streaming divisions.
According to reports, Amazon is assisting those affected by offering “outplacement services, health insurance benefits and more” in addition to a just severance payment.
