Amazon is cutting 180 jobs in the games division and shutting down two business units, such as the company's own livestreaming channel on Twitch.
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Amazon Gaming Continues Restructuring
After slashing jobs in the music division, Amazon is not stopping as it targets the games division. In an email viewed by Reuters, it was stated that the move is still part of the company's "broader restructuring." Moreover, VP of Amazon Games, Christoph Hartmann explained that there is a need to re-focus resources on areas that have the highest potential of growing and driving the business forward.
This marked the second layoff within the division this year, the first round being in April which affected 100 roles. The company had also begun informing employees as early as Monday morning, bringing the news that their positions had been eliminated.
Aside from this, the company is also shutting down the Crown Channel where gaming celebrities give variety-show entertainment. It will also affect the Game Growth wherein creators usually promote their titles. While Amazon invested huge amounts of money in popular video game streamers in Crown Channel, Bloomberg reported that many viewers were only "junk views," and these people did not actively watch the shows.
Amazon to Focus on Developing Games, Prime Subscription
In a memo by Hartmann, the VP shared that the company will now be focusing on developing games and distributing titles via Prime subscription. While the company faced some struggles creating its own games, it was still able to produce some successful titles such as New World and Lost Ark.
"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," Hartmann said. The VP also remained firm that he is confident with the division's future despite the need for restructuring.
Amazon Prime members have access to Prime Gaming as it is part of the $139 annual fee, giving them free shipping, free video streaming, and free games. The company is set to release Throne and Liberty, Blue Protocol, Tomb Raider, and The Lord of the Rings titles.
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