This article has been reviewed according to Science X's editorial process and policies. Editors have highlighted the following attributes while ensuring the content's credibility:

fact-checked

reputable news agency

proofread

Amazon cutting several hundred positions across Prime Video and MGM Studios unit

Amazon cutting several hundred positions across Prime Video and MGM Studios unit
This March 19, 2018 file photo shows Amazon's Prime Video streaming app on an iPad in Baltimore. Amazon is cutting several hundred positions across its Prime Video and MGM Studios unit. Mike Hopkins, senior vice president of Prime Video and Amazon MGM Studios, said in a note to employees, Wednesday, Jan. 10, 2024, that the staff cuts come as the company identified areas to reduce or discontinue investments while boosting its investment in areas that provide the most impact. AP Photo/Patrick Semansky, File)

Amazon is cutting several hundred positions across its Prime Video and MGM Studios unit.

Last month Amazon said that Prime Video users would start seeing ads on movies and television shows starting on January 29, setting a date for an announcement it made back in September.

Prime members who want to keep their movies and TV shows ad-free will have to pay an additional $2.99 per month.

Mike Hopkins, senior vice president of Prime Video and Amazon MGM Studios, said in a note to employees that the company is boosting investment in areas with the most impact, while stepping back from others.

Amazon has cut thousands of jobs after a hiring surge during the pandemic. In March, Amazon announced that it planned to lay off 9,000 employees. That was on top of the 18,000 employees the tech giant said that it would lay off in January 2023.

Job cuts are occurring elsewhere in the company this week.

Twitch, the video game streaming platform acquired by Amazon a decade ago for close to $1 billion, is laying off more than 500 employees as the company tries to turn the tremendously expensive division profitable.

Twitch CEO Dan Clancy in an email to employees said that even with cost cuts and growing efficiency, the platform "is still meaningfully larger than it needs to be given the size of our business."

"For some time now the organization has been sized based upon where we optimistically expect our business to be in 3 or more years, not where we're at today," Clancy wrote.

Departing employees at Amazon Prime Video will receive a separation payment and other benefits like job placement support.

In May Amazon said that it would distribute its original films and TV shows, like "The Marvelous Mrs. Maisel," to media outlets outside its Prime Video service for the first time.

That content would be licensed via a new unit called Amazon MGM Studios Distribution, which expands the number of titles currently offered by Hollywood studio MGM. In 2022, the e-commerce-behemoth-turned-media-giant closed its acquisition of MGM—which houses more than 4,000 film titles and 17,000 TV episodes—for $8.5 billion.

© 2024 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.

Citation: Amazon cutting several hundred positions across Prime Video and MGM Studios unit (2024, January 10) retrieved 20 April 2024 from https://techxplore.com/news/2024-01-amazon-positions-prime-video-mgm.html
This document is subject to copyright. Apart from any fair dealing for the purpose of private study or research, no part may be reproduced without the written permission. The content is provided for information purposes only.

Explore further

Amazon's Twitch cuts more than 500 jobs attempting to turn expensive platform profitable

7 shares

Feedback to editors