Amazon Slashes Video-Game Division Jobs Amid Broader Corporate Layoffs: Report

• This comes after Amazon said it would reduce its corporate workforce by about 14,000 roles, building on a recent slew of job cuts at the company.
• In June, CEO Andy Jassy had said that there would be a reduction in the total corporate workforce as the company rolls out more generative AI and agents.
• According to a Bloomberg News report, as part of the reductions, Amazon would be reducing the amount of work the company does on big-budget titles, mainly around massively multiplayer online games.

Amazon.com (AMZN) is reportedly cutting roles in its video-game division as part of a broad workforce reduction that the e-commerce and technology giant announced earlier in the day.

This comes after the company said on Tuesday that it would reduce its corporate workforce by about 14,000 roles, building on a recent slew of job cuts the company has planned to save costs and increase investment in artificial intelligence.

According to a Bloomberg News report, citing a memo to staff on Tuesday, Amazon did not detail how many employees in the video-game unit will be impacted but outlined that the job reductions would happen in its Irvine and San Diego offices as well as its central publishing division.

Retail sentiment on Amazon improved to ‘bullish’ from ‘neutral’ territory compared to a day ago, with message volumes at ‘high’ levels, according to data from Stocktwits. Shares of Amazon rose nearly 2% in afternoon trading.

Amazon’s Mass Layoffs

In June, CEO Andy Jassy had said that there would be a reduction in the total corporate workforce as the company rolls out more generative AI and agents.

“We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs," said Jassy.

On Tuesday, Beth Galetti, Senior Vice President of People Experience and Technology at Amazon, said that Amazon was convinced the company needed to be organized more leanly, with fewer layers and more ownership, to move as quickly as possible for its “customers and business.”

Details On Amazon’s Video-Game Division Job Cuts

Bloomberg said that as part of the job cuts, Amazon would be reducing the amount of work the company does on big-budget titles, mainly around massively multiplayer online games, also known as MMOs.

“While we’re proud of our successes in first-party AAA game development and publishing, we have made the difficult decision to halt a significant amount of our first-party AAA game development work – specifically around MMOs – within Amazon Game Studios,” said Steve Boom, vice president of Audio, Twitch, and Games, according to Bloomberg.

Boom added that this would include “making significant role reductions in our studios in Irvine and San Diego, as well as our central publishing team.”

Shares of Amazon have gained nearly 21% in the last 12 months.

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