Amazon laying off 100 employees from video games division
But intends to expand its development studios.
Just over 100 people have lost their jobs at Amazon's video games division as part of the massive job culls announced a couple of weeks ago.
Over 400 Twitch employees lost their jobs in late March, with Twitch CEO Dan Clancy blaming the "current macroeconomic environment" for the layoffs.
The further 100 employees who are being laid off are a part of Game Growth, Amazon Game's San Diego studio, and Prime Gaming, according to an internal memo obtained by CNBC. The memo was written by vice president of Amazon Games Christoph Hartmann.
Staff being let go were reportedly pulled aside into meetings with HR on Tuesday afternoon, one affected employee told CNBC, where they were then informed about the decision.
Hartmann said the changes were being made after "evaluating our current projects against our long-term goals". Hartmann also revealed some staff will be reassigned to internally, whilst the company intends to grow their studios in Montreal and Irvine. Amazon Games Montreal is currently working on its MMO New World, whilst the Irvine and San Diego studios are working on separate unannounced projects, Hartmann noted in the memo.
This is the latest wave of job cuts in the video games industry this year, which has already seen EA, Microsoft, Take-Two, Riot Games, Meta, Team 17 and Hasbro lay off several hundreds to thousands of employees.