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Amazon is shedding roughly 100 workers throughout its video video games division, an government overseeing the unit wrote in a memo to staffers on Tuesday.

The layoffs included workers within the Recreation Development group, Amazon’s San Diego gaming studio, and Prime Gaming, an providing focused for members of Amazon’s mainstay loyalty program, Christoph Hartmann, vice chairman of Amazon Video games, wrote within the memo. Some staffers have additionally been reassigned to different tasks “that match our strategic focus,” Hartmann stated.

“There may be by no means a pleasing solution to share this form of information, however we’re dedicated to treating our impacted workers with empathy and respect, and can assist them by providing them severance pay, medical health insurance advantages, outplacement providers, and paid time to conduct their job search,” he stated.

The cuts come as Amazon CEO Andy Jassy has moved to rein in costs throughout the corporate. Final month, Jassy announced Amazon would lay off a further 9,000 workers, on prime of the earlier spherical of cuts totaling more than 18,000 people. The corporate has additionally instituted a hiring freeze in its company workforce, and it has shuttered some experimental tasks, akin to a telehealth service and a sidewalk supply robotic.

On Tuesday afternoon, Amazon started notifying staffers that they had been being laid off by pulling them into a gathering with human sources, in accordance with one affected worker. This particular person requested anonymity as a result of they weren’t licensed to talk on the matter.

Since its launch in 2013, Amazon Video games has struggled to supply a success regardless of a number of revealed tasks, and the corporate luring prime expertise from the likes of Sony On-line Leisure. Amazon in 2020 launched its first big-budget recreation, Crucible, then canceled the free-to-play shooter inside just a few months. A 12 months later, Amazon launched the PC recreation New World, which loved some early success, and it sought to capitalize on the excitement by launching on-line motion role-playing recreation Misplaced Ark final February.

Amazon’s video video games division has additionally skilled some turnover amongst its prime ranks. Mike Frazzini, who helped launch Amazon’s recreation studios, stepped down final March. And in January, John Smedley, who headed up Amazon Video games’ San Diego studio, exited the company.

A spokesperson for Amazon confirmed the layoffs and the existence of the memo however declined additional remark.

This is the total memo from Hartmann:

Hi there everybody,

I wish to take a second to make you conscious of some modifications occurring as we speak throughout the Video games enterprise and description our path ahead.

It’s my agency perception that we now have a novel alternative to change into one of many main publishers of high-quality gaming content material that delights gamers for years — whether or not that is creating our personal video games internally, publishing titles from proficient builders like Bandai Namco and Crystal Dynamics, offering entertaining reveals on Crown Channel, or providing nice content material by way of Prime Gaming. Delivering the most effective content material for gamers is on the heart of what we do, and as we speak’s modifications are geared toward focusing our groups towards that dedication.

After evaluating our present tasks towards our long-term targets, the Video games management staff made the tough determination to eradicate simply over 100 roles throughout Prime Gaming, Recreation Development and in our San Diego studio, whereas additionally reassigning some workers to different tasks that match our strategic focus. Every worker whose function has been eradicated ought to now have a stay assembly scheduled this morning so we are able to talk about these modifications immediately and provides every worker a possibility to ask questions. There may be by no means a pleasing solution to share this form of information, however we’re dedicated to treating our impacted workers with empathy and respect, and can assist them by providing them severance pay, medical health insurance advantages, outplacement providers, and paid time to conduct their job search.

Going ahead, our sources can be aligned to assist our deal with content material. We are going to proceed to spend money on our inner improvement efforts, and our groups will proceed to develop as our tasks progress: The New World staff in Irvine will develop as we shift some sources to additional assist its continued improvement. Our studio in Montreal will proceed to increase, and is making nice progress on their unannounced undertaking. And the San Diego studio will double down on the pre-production section of their unannounced recreation, as that undertaking shouldn’t be but prepared for a full manufacturing dimension staff. We may even proceed increasing our publishing efforts, and we stay very lively in exploring and signing new tasks the place we see nice potential, akin to our current publishing settlement with NCSOFT. And at last, we’re optimizing our retail and backend targeted groups to make sure Amazon Video games and Prime Gaming ship robust worth and wealthy experiences for our prospects, and are adjusting the staff sizes accordingly.

I acknowledge that the affect of those choices isn’t just to the enterprise, however to our teammates and pals. It by no means feels good to say goodbye to colleagues, and I thanks for supporting them as they work by this variation. We respect it is a tough time and that you will have questions or issues. Your supervisor, L8 enterprise chief and HRBPs can be found for conversations. As well as, if you happen to’re , a licensed counselor is on the market to talk with you by cellphone 24/7 by our (US Telephone: 1-833-721-2323).

I’m assured within the course we’re headed. Amazon Video games has gained momentum over the previous couple of years because of your arduous work, dedication and dedication to gamers. We have launched two video games and have seven extra tasks introduced, with much more within the pipeline, along with the brand new Crown reveals and Prime Gaming content material we now have lined up. Thanks to each one in all you for exhibiting up day-after-day to make that occur. In case you have questions or want to attach, please attain out to me or your staff leads.



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