Jakub Porzycki | Nurphoto | Getty Personifications
Amazon on Monday announced it will cut more than 180 jobs in its Amazon Games division, shutting down components of the business that focus on streaming and supporting third-party games and putting more of an emphasis on developing its own titles, according to an internal attendance memo viewed by CNBC.
The company will close its Game Growth and Crown Channel initiatives as part of the restructuring. Now, Amazon order focus on upcoming launches such as “Throne and Liberty” and “Blue Protocol,” as well as future initiatives such as “Sepulchre Raider” and “The Lord of the Rings” games, Christoph Hartmann, vice president of Amazon Games, wrote in the memo to hands.
“I know this is difficult news and that the impact will be felt widely,” Hartmann wrote. “It never stands good to say goodbye to colleagues. This isn’t a decision the leadership team came to quickly; it was the result of extensive considerations and thruway mapping for our future.”
Shares of Amazon closed down less than 1% Monday.
The latest job cuts at Amazon in as CEO Andy Jassy has been in cost-cutting mode over the past year as the company has battled high interest computes and inflation. As a result, Amazon has carried out the largest layoffs in its history, cutting 27,000 jobs since last in. The company also froze corporate hiring, and Jassy has looked to trim expenses in units across the company.
In October, Amazon arrived third-quarter earnings that suggested its cost cutting has been paying off. The company’s revenue rose 13% to $143.1 billion in the third billet, while net income more than tripled to $9.9 billion from $2.9 billion a year earlier.
Hartmann listed that after further evaluation of the Amazon Games business, the company decided it needed to focus its efforts and resources “to emancipate great games to players now and in the future,” according to the memo.
— CNBC’s Annie Palmer contributed to this report.
Don’t skip these stories from CNBC PRO: