In This New Year Amazon Announces Large-Scale Layoffs in OTT Business Division

Industry Restructuring and Amazon Announces Large-Scale Layoffs

“Starting the new year with layoffs”… Amazon announces large-scale layoffs in its online video streaming (OTT) related business. Even in the OTT industry, which was once a sensational craze, a ‘sharp wind’ of restructuring is blowing.

Workforce Reduction Plan Unveiled by Amazon Leadership

According to the U.S. CNBC broadcast on the 10th (local time), Mike Hopkins, head of Amazon’s Prime Video and MGM Studio departments, notified employees of the workforce reduction plan on this day. In a notice, Hopkins said, “As a result of reviewing (the business outlook), we identified an opportunity to increase investment by focusing on content and products that will have the greatest impact by reducing or stopping investment in certain areas.”

Hundreds of Positions to be Eliminated in Prime Video and MGM Studios

He added, “Prime Video and “Hundreds of positions will be eliminated from the Amazon MGM Studios organization,” the company said in a statement. “Starting today, we will begin contacting colleagues affected by role reductions,” he continued. “We expect notifications to be completed this morning for the Americas and by the end of the week for most other regions.”

Twitch, an Amazon Subsidiary, Announces Concurrent Layoffs

Twitch, a live streaming platform that is a subsidiary of Amazon, also officially announced its decision on large-scale layoffs on this day. The Associated Press reported that Twitch CEO Dan Clancy sent an email to employees saying, “I regret taking the painful step of cutting more than 500 jobs across Twitch.” This confirmed what was already known through a Bloomberg News report the previous day.

Twitch’s Additional Measures and Business Operations Decision

Twitch also announced last month that it had “decided to end business operations in Korea as of February 27” due to excessive network usage fees. Bloomberg pointed out, “The new year in the tech industry began with large-scale layoffs at several companies,” adding, “This is reminiscent of early last year when the industry began experiencing the sharpest downturn in the past 10 years.”

Tech Industry Layoffs Surge in Early New Year

The U.S. tech industry carried out large-scale layoffs, including laying off about 167,500 people in the first quarter of last year alone.

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