Amazon Games Division Cuts Around 100 Jobs in Latest Cost-Cutting Move

According to an internal memo sent to employees by Christoph Hartmann, Vice President of Amazon Games, Amazon has laid off approximately 100 employees from its video game division. The layoffs are part of CEO Andy Jassy's larger effort to cut costs across the board. (VIA CNBC)

Source : Amazon’s New World

IMPACT

The layoffs impacted employees in the Game Growth group, a San Diego gaming studio, and Prime Gaming, an Amazon-focused loyalty program. According to the memo, some employees have also been reassigned to other projects that align with Amazon's strategic focus.

NOT PLEASANT

"While there is never a pleasant way to share this sort of news, we are committed to treating our impacted employees with empathy and respect, and will support them by offering them severance pay, health insurance benefits, outplacement services, and paid time to conduct their job search," Hartmann said in the memo.

FAILING

Despite luring top talent from Sony Online Entertainment and other established game companies, Amazon Games has struggled to produce a hit since its launch in 2013. The company has released several projects, but none have been as successful as competitors such as Fortnite, Call of Duty, and Minecraft.

DOWNHILL

The layoffs come on the heels of Mike Frazzini, the CEO of Amazon Games, leaving the company in February. It's unclear how the layoffs will affect the company's current game projects, including the August release of the MMO New World.

HARD MARKET

With established players such as Electronic Arts, Activision Blizzard, and Ubisoft dominating the market, the video game industry can be notoriously difficult to break into. Amazon's struggles in the gaming industry demonstrate that even tech behemoths with vast resources and talented teams can struggle to make a dent in the industry.