Amazon cuts games unit jobs in broader restructuring

Nov 13 (Reuters) – Amazon.com (AMZN.O) has cut around 180 jobs in its games division, at least the second round of layoffs in under a week by the online retailer and digital streaming provider in a broader restructuring, an email viewed on Monday by Reuters showed.

“After our initial restructuring in April, it became clear that we needed to focus our resources even more on the areas that are growing with the highest potential to drive our business forward,” said Christoph Hartmann, vice president of Amazon Games, in the Nov. 13 email.

The company began informing employees Monday morning that their roles had been eliminated, in the second cut to the division this year.

Amazon last week also began cutting jobs in its streaming music and podcast division, people familiar with the matter said. It also cut a very small number of jobs in its human resources unit known as People Experience and Technology, or PXT, the sources added.

The games division offers downloadable versions of many video games, on a monthly rotation, as well as some Twitch channels and other services. The company remains focused on developing and publishing games such as “Blue Protocol” and the free games offered within Prime Gaming, it said.

Prime Gaming is a perk offered as part of the $139 annual Prime membership that includes free shipping and free streaming video.

“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.

In April, Amazon cut about 100 jobs in the games unit.

Amazon’s third-quarter net income far surpassed analysts’ estimates and the Seattle-based company forecast revenue in the year’s final quarter roughly in line with expectations.

Amazon has cut more than 27,000 roles over the past year, part of a wave of U.S. tech layoffs after the industry hired too many people during the pandemic.

Hartmann, in his email, said the company is “actively recruiting” for other roles in the division.

“I recognize that this is the second time this year that you are hearing about org-wide team changes and seeing colleagues go, so let me be very clear when I say this: I remain confident in our future,” he said.

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