Amazon Games has announced a restructuring of its operations, leading to the termination of over 180 positions. This decision, revealed through an internal memo, marks a pivotal shift in the company’s focus from supporting third-party games and streaming services to prioritizing the development of its own gaming titles.
Focusing on Future Titles
Christoph Hartmann, Vice President of Amazon Games, outlined the company’s new direction in the memo. Amazon will now concentrate on forthcoming releases such as “Throne and Liberty” and “Blue Protocol,” while also developing major projects like “Tomb Raider” and “The Lord of the Rings” games. Hartmann acknowledged the difficulty of this decision, emphasizing that it was not made hastily but was the result of thorough planning for the company’s future.
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Economic Pressures and Cost-Cutting Measures
The job cuts at Amazon Games come amidst broader cost-cutting efforts by Amazon CEO Andy Jassy. Facing challenges such as high interest rates and inflation, Jassy has implemented the largest layoffs in Amazon’s history, totaling 27,000 jobs since last fall. This includes a freeze on corporate hiring and expense reductions across various company units.
Financial Upswing Despite Cuts
Despite these cuts, Amazon reported a 13% increase in revenue to $143.1 billion in the third quarter, with net income soaring to $9.9 billion, more than tripling from the previous year. This suggests that the company’s cost-cutting measures are yielding financial benefits.
A Future Focused on Gaming Excellence
Hartmann’s memo highlights Amazon Games’ commitment to delivering high-quality gaming experiences. The company’s decision to streamline its focus is a strategic move to strengthen its position in the competitive gaming market.
