• by Karlene Lukovitz  @KLmarketdaily, January 10, 2024

Just days before Amazon Prime Video is set to launch its ad-supported tier on Jan. 29, Amazon has announced that it will cut several hundred jobs at Prime Video and MGM Studios.

Senior Vice President Mike Hopkins announced the cuts in a memo to employees of the units on Wednesday.

"Throughout the past year, we’ve looked at nearly every aspect of our business with an eye towards improving our ability to deliver even more breakthrough movies, TV shows, and live sports in a personalized, easy to use entertainment experience for our global customers,” Hopkins wrote. “As a result, we've identified opportunities to reduce or discontinue investments in certain areas while increasing our investment and focus on content and product initiatives that deliver the most impact.”

The announcement comes on the same day that Amazon’s Twitch announced about 500 layoffs.

After investing heavily in rapid expansion driven by the pandemic boom in online buying and streaming consumption, Amazon initiated a massive pullback, cutting more than 27,000 jobs, or 8% of its corporate workforce, since 2022, including a reported 18,000 in 2023.

Amazon paid nearly $8.5 billion for MGM in 2022.