Key Takeaways
Created with AI - we're still experimenting, so apologies if it misses the mark
- Amazon has carried out another round of layoffs, affecting around 16,000 employees worldwide, including its game studios, as part of an effort to streamline operations across various projects.
- The tech giants profits have increased significantly from last year to this year, yet these layoffs still occurred. This could indicate a focus on cost reduction and efficiency rather than solely profit maximization.
- The cuts at Amazon Game Studios and the departure of Christoph Hartmann, a gaming industry veteran, suggest a potential shift in Amazons gaming strategy towards cloud-based services like Amazon Luna.
- The layoffs and potential strategic shift may indicate a move away from in-house game development in favor of focusing resources on cloud gaming services, positioning Amazon to compete more effectively in the rapidly evolving gaming industry.
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Mass Layoffs Hit Amazon Global Workforce Again, Including Game Studios; Potential Shift Towards Cloud Gaming?
Amazon implemented a second major round of layoffs this Wednesday, impacting approximately 16,000 employees globally. This follows a previous reduction of 14,000 positions in October. According to an internal email from Beth Galetti, Amazon’s VP of Tech and People Services (later made public), the layoffs aim to streamline operations within the company’s various projects. These layoffs occur even as Amazon’s profits have increased from $15.3 billion last year to $21.2 billion this year. Amazon Game Studios experienced layoffs as well. Following previous staff reductions on the MMORPG New World: Aeternum, these latest layoffs suggest a potential shift in Amazon’s gaming strategy. The cuts included Christoph Hartmann, former VP of Amazon Game Studios. Hartmann, a co-founder of 2K Games, joined Amazon in 2018 with the goal of establishing the company as a major force in the gaming industry. His departure underscores this potential shift, with the company possibly moving away from in-house game development to focus more on Amazon Luna, its cloud gaming service.
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