Amazon Games Division Undergoes Second Round of Layoffs in Ongoing Restructuring

In a continuation of its restructuring efforts, Amazon has announced a second round of layoffs within its games division, eliminating 180 jobs. This move comes just a week after the company's initial round of workforce reductions and marks the second occasion this year that the games division has faced such cuts.

Christoph Hartmann, the vice president of Amazon Games, revealed in an internal email that the company has decided to close two gaming initiatives, namely Crown Channel and Game Growth. The primary objective is to reallocate resources and refocus efforts on Prime Gaming. Hartmann emphasized that this decision was driven by customer feedback, stating, "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."

The restructuring efforts will result in the elimination of just over 180 roles. This move follows Amazon Games' previous restructuring in April, where over 100 employees were laid off, and some were reassigned. The adjustments were made to align resources with a strategic focus on content creation.

Hartmann reiterated the company's commitment to its vision of becoming a leading developer and publisher of high-quality games. He mentioned that the ongoing review of experiments is crucial in understanding gamer preferences and shaping the company's future direction.

Despite the layoffs, Hartmann assured that Amazon's internal studios are actively hiring as they work on developing new intellectual property (IP). Additionally, Prime Gaming remains dedicated to securing deals and delivering content on a monthly basis. Hartmann expressed confidence that the refined business approach and strategic resourcing will contribute to achieving their goal of becoming a key player in the gaming industry.

This latest round of layoffs in the games division follows a pattern seen in other Amazon sectors, such as the recent job cuts in the music division, including the audio streaming platform and digital storefront for songs. It is important to note that these reductions are distinct from the broader layoffs that began last year, affecting 27,000 positions across the entire company.

Amazon's second round of layoffs in its games division reflects the company's ongoing efforts to streamline its operations and respond to customer preferences. As the company continues to navigate the dynamic landscape of the gaming industry, the strategic refocusing on Prime Gaming and the commitment to creating high-quality content signal Amazon's determination to establish itself as a prominent player in the gaming market. However, the impact of these restructuring efforts on the affected employees and the overall trajectory of Amazon's gaming ventures will be closely monitored in the coming months.