Amazon Prime Games Division Cuts 180 Jobs, Furthering Industry Layoffs

Amazon has recently reduced its workforce considerably, eliminating approximately 180 positions in its games division. This move marks “at least the second round of layoffs in under a week” as a part of a wider restructuring strategy within the company as it attempts to streamline its operations and strengthen its market position.

Over the past year, Amazon has severed ties with more than 27,000 employees, contributing to an escalating trend of tech layoffs across the U.S. This surge in job cuts has come in the aftermath of increased hiring during the pandemic. As the industry adjusts to a post-pandemic environment, companies like Amazon are rectifying this imbalance through workforce reductions.

According to its leadership, Amazon claims that it understands the primary strength of its gaming operations and has recalibrated its efforts to capitalize on these findings.

“We’ve listened to our customers and we know delivering free games every month is what they want most, so we are refining our Prime benefit to increase our focus there.”

Christoph Hartmann, vice president of Amazon Games, via Reuters

Amazon Games, founded in 2012, initially focused on mobile games but has since expanded into larger titles, even announcing plans in 2022 to develop games based on the Tomb Raider and Lord of the Rings franchises. Additionally, the gaming department provides a multitude of video games for download, changing on a monthly basis, alongside certain Twitch channels and additional services. The company continues to prioritize the creation and publication of games like “Blue Protocol” and the complimentary games available on Prime Gaming.

Amazon is the owner of the popular gaming streaming platform Twitch and is closing its own struggling channel on the service. This follows a challenging 2023 for the gaming industry, which saw about 6,500 job losses despite successful game launches. In the past six months, several game companies, including Epic Games, Ubisoft Montreal, and Niantic, have announced cutbacks.