Amazon lays off more than 100 employees in its video games division: Read the memo here

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

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

“There’s by no means a nice approach to share this type of information, however we’re dedicated to treating our impacted workers with empathy and respect, and can help them by providing them severance pay, medical insurance advantages, outplacement companies, and paid time to conduct their job search,” he mentioned.

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 an extra 9,000 workers, on high 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, comparable to a telehealth service and a sidewalk supply robotic.

On Tuesday afternoon, Amazon started notifying staffers that they have been being laid off by pulling them into a gathering with human assets, in keeping with one affected worker. This individual 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 successful regardless of a number of revealed tasks, and the corporate luring high 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 a number of months. A yr later, Amazon launched the PC recreation New World, which loved some early success, and it sought to capitalize on the thrill 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 high 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:

Good day everybody,

I need to take a second to make you conscious of some modifications occurring in the present day throughout the Video games enterprise and description our path ahead.

It’s my agency perception that we’ve a singular alternative to turn out to be 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 gifted 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 perfect content material for gamers is on the heart of what we do, and in the present day’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 group made the troublesome resolution to eradicate simply over 100 roles throughout Prime Gaming, Sport Development and in our San Diego studio, whereas additionally reassigning some workers to different tasks that match our strategic focus. Every worker whose position has been eradicated ought to now have a dwell assembly scheduled this morning so we will talk about these modifications instantly and provides every worker a chance to ask questions. There’s by no means a nice approach to share this type of information, however we’re dedicated to treating our impacted workers with empathy and respect, and can help them by providing them severance pay, medical insurance advantages, outplacement companies, and paid time to conduct their job search.

Going ahead, our assets can be aligned to help our deal with content material. We’ll proceed to put money into our inner improvement efforts, and our groups will proceed to develop as our tasks progress: The New World group in Irvine will develop as we shift some assets to additional help its continued improvement. Our studio in Montreal will proceed to increase, and is making nice progress on their unannounced mission. And the San Diego studio will double down on the pre-production part of their unannounced recreation, as that mission is just not but prepared for a full manufacturing dimension group. We can even proceed increasing our publishing efforts, and we stay very energetic in exploring and signing new tasks the place we see nice potential, comparable to our latest publishing settlement with NCSOFT. And eventually, we’re optimizing our retail and backend centered groups to make sure Amazon Video games and Prime Gaming ship sturdy worth and wealthy experiences for our prospects, and are adjusting the group sizes accordingly.

I acknowledge that the influence of those choices is not only to the enterprise, however to our teammates and mates. It by no means feels good to say goodbye to colleagues, and I thanks for supporting them as they work by means of this variation. We respect it is a troublesome time and that you could have questions or issues. Your supervisor, L8 enterprise chief and HRBPs can be found for conversations. As well as, in case you’re , a licensed counselor is accessible to talk with you by telephone 24/7 by means of our (US Cellphone: 1-833-721-2323).

I’m assured within the route we’re headed. Amazon Video games has gained momentum over the previous couple of years due to 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’ve lined up. Thanks to every one among you for exhibiting up each day to make that occur. You probably have questions or want to attach, please attain out to me or your group leads.



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