Amazon announced this week its intention to lay off more than 100 employees of its gaming department. The company specified that this new wave of cuts will have an impact on the specialists who work in Prime Gamingthe gaming growth group, as well as its San Diego-based studio.
The studio, led by John Smedley, a seasoned former head of Sony Online Entertainment, was founded in 2017. with the purpose of creating online games. However, after six years of operation without any launches, Smedley stepped down in January of this year.
According to a memo signed by Christoph Hartmann, vice president of Amazon Games, the company is conducting a general overhaul and the announced layoffs are part of this process. According to the document, several professionals will be relocated to projects that “fit with the current strategic approach” of the company.
The layoffs within the games department are part of a general trend in Amazon’s structure. At the beginning of the year, the company announced that would eliminate 18,000 jobsbut in a statement issued in March, the figure was expanded to 9,000 additional employees.
Amazon recently announced significant cuts in various areas of activity from his streaming platform Twitch. Around 400 jobs were eliminatedwhich was justified by the prospects for revenue and profit growth, as well as by the “current macroeconomic environment”.
Amazon Games expressed regret over the decision and pledged to provide support to all affected employees. Despite this, the company assured that it will continue to invest in its development studies and pay special attention to projects such as New World.
Source: VGC
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