Technology
Monday, November 13th, 2023 7:19 pm EDT
Key Points
- Job Cuts and Restructuring: Amazon has announced plans to cut more than 180 jobs in its Amazon Games division as part of a restructuring effort. The company will close down its Game Growth and Crown Channel initiatives. This decision reflects a refocusing of efforts on Prime Gaming, with a strategic emphasis on upcoming game launches such as “Throne and Liberty,” “Blue Protocol,” and future initiatives like “Tomb Raider” and “The Lord of the Rings” games.
- Leadership Communication and Employee Impact: Christoph Hartmann, Vice President of Amazon Games, communicated this decision to employees through an internal memo. In the memo, Hartmann acknowledged the difficulty of the news and expressed understanding that the impact would be felt widely among the workforce. He highlighted that the decision wasn’t made hastily but was the result of extensive considerations and road mapping for the company’s future.
- Cost-Cutting Measures Amid Economic Challenges: The job cuts align with Amazon CEO Andy Jassy’s cost-cutting mode over the past year, driven by challenges such as high-interest rates and inflation. Amazon has undergone its largest layoffs in history, with 27,000 jobs cut since the previous fall. Corporate hiring has been frozen, and Jassy has actively sought to trim expenses across various units within the company. Despite these challenges, Amazon reported positive outcomes from its cost-cutting initiatives in the third quarter, with a 13% increase in revenue to $143.1 billion and net income more than tripling to $9.9 billion from $2.9 billion compared to the previous year. Hartmann emphasized that the restructuring decision for Amazon Games is aimed at focusing efforts and resources to deliver high-quality games to players both in the present and the future.
Amazon has announced significant job cuts, eliminating more than 180 positions in its Amazon Games division as part of a restructuring effort to refocus on Prime Gaming. The company will shut down its Game Growth and Crown Channel initiatives, redirecting its attention to upcoming game launches such as “Throne and Liberty” and “Blue Protocol,” along with future initiatives involving “Tomb Raider” and “The Lord of the Rings” games. Christoph Hartmann, Vice President of Amazon Games, conveyed this decision in an internal memo, acknowledging the difficulty of the news and expressing the leadership team’s extensive considerations for the company’s future.
This move comes as part of Amazon CEO Andy Jassy’s cost-cutting measures over the past year, during which the company has faced challenges related to high-interest rates and inflation. Amazon has undergone its most extensive layoffs in history, cutting 27,000 jobs since the fall of the previous year. Corporate hiring has been frozen, and various units within the company have experienced expense reductions as part of Jassy’s efforts to manage costs effectively.
Despite these challenges, Amazon reported positive outcomes from its cost-cutting initiatives in the third quarter. The company’s revenue increased by 13% to $143.1 billion, and net income more than tripled, reaching $9.9 billion compared to $2.9 billion in the same period the previous year.
In the internal memo, Hartmann emphasized that after a thorough evaluation of the Amazon Games business, the decision to refocus efforts and allocate resources to deliver high-quality games to players was reached. While the restructuring involves job cuts and the closure of certain initiatives, Amazon remains committed to its gaming endeavors, with a strategic focus on specific upcoming launches and future gaming projects.
For the full original article on CNBC, please click here: https://www.cnbc.com/2023/11/13/amazon-cuts-more-than-180-jobs-in-gaming-division.html
