Amazon is undergoing significant job cuts, eliminating positions across its video production and distribution divisions, affecting Amazon Prime Video, MGM Studios, and live streaming platform Twitch. These layoffs are part of a broader trend in the tech industry, with Amazon having cut over 27,000 jobs in the past year. Furthermore, Google announced a workforce reduction involving several hundred job cuts. The layoffs will affect employees in Google's hardware and central engineering teams, as well as those working on Google Assistant and other areas of the company. These new layoffs come after Alphabet cut 12,000 jobs last January, and Amazon cut over 25,000 in 2023.
Amazon's strategic shifts in job cuts and pricing adjustments reflect the dynamic nature of the tech and media industry. While trimming positions in certain divisions, the company is doubling down on content creation and impactful product initiatives. Amazon has been making aggressive investments in its media business, such as the $8.5 billion acquisition of MGM and significant spending on original content like "The Lord of the Rings: The Rings of Power" on Prime Video in 2022. The move to increase prices for an ad-free experience aligns with industry trends seen in competitors like Netflix and Disney. This signals a focus on revenue generation and sustainability in the competitive streaming landscape.
Google's layoffs are a signal that the company is adjusting to slowing advertising revenue, higher interest rates and a strengthened focus on expanding its stake in the burgeoning AI sector.
As Amazon and Google continue to reshape priorities, the tech industry should anticipate further adaptations and strategic maneuvers, impacting both employment and consumer experiences.
We at Otterbrook are always saddened to hear of major layoffs, please feel free to reach out to one of our partners and we’ll see how we can help if you’ve been laid off.